McDonald’s is anticipated to disclose its fourth-quarter earnings on Monday before the opening bell. According to analysts surveyed by LSEG (formerly Refinitiv), the expected figures are:
- Earnings per share: $2.82
- Revenue: $6.45 billion
The company had a strong start in 2023 with double-digit same-store sales growth and increased traffic in the first half. However, in the third quarter, McDonald’s noted a decline in spending from low-income consumers, impacting traffic to U.S. restaurants. Analysts predict a continuation of challenges in the fourth quarter.
Projections indicate a modest 4.7% growth in quarterly same-store sales, significantly lower than the 10.9% reported a year ago. McDonald’s has experienced a slowdown in price hikes, and the industry witnessed decreased foot traffic in November and December.
CEO Chris Kempczinski highlighted the negative impact of the Israel-Hamas conflict on sales, affecting regions both within and outside the Middle East. Calls for a boycott on social media emerged after McDonald’s Israeli franchisee offered discounts to soldiers.
Similar to McDonald’s, Starbucks faced boycotts related to the Middle East, resulting in a decline in U.S. traffic as occasional customers avoided its cafes.
For the year 2024, Wall Street projects McDonald’s to earn $12.53 per share, marking a 6.1% increase from the previous year, with an anticipated revenue of $27.14 billion, reflecting a 6.3% rise.
Despite challenges, McDonald’s stock has seen a 12% increase in the past year, reaching a market value of approximately $215 billion.
