We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
McDonald's Corporation (MCD - Free Report) reported third-quarter 2024 results, with both earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. Despite reporting better-than-expected results, the company’s shares were down 2.3% in the pre-market trading session as investors' sentiments were hurt by dismal comps performance.
Chairman and CEO Chris Kempczinski said McDonald's will keep advancing its Accelerating the Arches strategy to foster global long-term growth and succeed in today’s environment.
MCD’s Earnings & Revenue Performance
In third-quarter 2024, McDonald's reported adjusted earnings per share (EPS) of $3.23, which beat the Zacks Consensus Estimate of $3.18. Moreover, adjusted earnings rose 1% year over year.
Quarterly net revenues of $6,873 million surpassed the consensus mark of $6,796 million. The top line increased 3% year over year.
At company-operated restaurants, sales totaled $2.66 billion, up 4% year over year. Sales at franchise-operated restaurants amounted to $4.09 billion, which increased 1% year over year. Other revenues rose 39% year over year to $124 million. Our model predicted sales by company-operated and franchise-operated restaurants to rise 0.6% and 0.12%, respectively, from the prior-year levels.
McDonald's Corporation Price, Consensus and EPS Surprise
In the quarter under discussion, global comps declined 1.5% against 8.8% growth in the prior-year quarter. Our estimate was a 0.6% decline year over year. The company’s comps decreased for the second straight quarter.
Comps Across MCD’s Segments
United States: In the third quarter, segmental comps rose 0.3% compared with 8.1% growth in the prior-year quarter. The comparable sales results indicated growth in the average check, though this was partially offset by a slight decline in comparable guest counts. Effective value and marketing campaigns centered on core menu items, strong execution at the restaurant level and ongoing growth in digital and delivery channels collectively supported modestly positive comparable sales. Our model estimated the U.S. comps to decrease 1.1%.
International Operated Markets: Segmental comps decreased 2.1% against 8.3% growth in the year-ago quarter. The performance of the segment was affected by declining comparable sales in several markets, with France and the United Kingdom being significant contributors to this downturn. We anticipated a decrease of 0.3% from the year-ago levels.
International Developmental Licensed Segment: Segmental comparable sales registered a 3.5% decline against 10.5% growth in the prior-year quarter. The ongoing conflict in the Middle East and declining comparable sales in China outweighed the positive sales performance in Latin America.
Operating Highlights & Expenses of McDonald's
In the third quarter, McDonald’s total operating costs and expenses were $3.69 billion, up 6% year over year.
Operating income dropped 1% year over year to $3.19 billion. Net income totaled $2.26 billion, down 3% year over year.
CAVA has a trailing four-quarter earnings surprise of 257.7%, on average. The stock has surged 345.5% in the past year. The Zacks Consensus Estimate for CAVA’s 2024 sales and EPS indicates a rise of 29.1% and 104.8%, respectively, from the year-ago period’s levels.
ANF has a trailing four-quarter earnings surprise of 28%, on average. The stock has surged 131.4% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and EPS indicates growth of 13% and 63.4%, respectively, from the year-ago period’s levels.
Boot Barn Holdings, Inc. (BOOT - Free Report) currently carries a Zacks Rank #2. BOOT has a trailing four-quarter earnings surprise of 6.8%, on average. The stock has risen 132.2% in the past year.
The consensus estimate for BOOT’s fiscal 2025 sales and EPS indicates growth of 12.1% and 10.9%, respectively, from the year-ago period’s levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
McDonald's Q3 Earnings & Revenues Beat Estimates, Comps Decline
McDonald's Corporation (MCD - Free Report) reported third-quarter 2024 results, with both earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. Despite reporting better-than-expected results, the company’s shares were down 2.3% in the pre-market trading session as investors' sentiments were hurt by dismal comps performance.
Chairman and CEO Chris Kempczinski said McDonald's will keep advancing its Accelerating the Arches strategy to foster global long-term growth and succeed in today’s environment.
MCD’s Earnings & Revenue Performance
In third-quarter 2024, McDonald's reported adjusted earnings per share (EPS) of $3.23, which beat the Zacks Consensus Estimate of $3.18. Moreover, adjusted earnings rose 1% year over year.
Quarterly net revenues of $6,873 million surpassed the consensus mark of $6,796 million. The top line increased 3% year over year.
At company-operated restaurants, sales totaled $2.66 billion, up 4% year over year. Sales at franchise-operated restaurants amounted to $4.09 billion, which increased 1% year over year. Other revenues rose 39% year over year to $124 million. Our model predicted sales by company-operated and franchise-operated restaurants to rise 0.6% and 0.12%, respectively, from the prior-year levels.
McDonald's Corporation Price, Consensus and EPS Surprise
McDonald's Corporation price-consensus-eps-surprise-chart | McDonald's Corporation Quote
McDonald's Comps Details
In the quarter under discussion, global comps declined 1.5% against 8.8% growth in the prior-year quarter. Our estimate was a 0.6% decline year over year. The company’s comps decreased for the second straight quarter.
Comps Across MCD’s Segments
United States: In the third quarter, segmental comps rose 0.3% compared with 8.1% growth in the prior-year quarter. The comparable sales results indicated growth in the average check, though this was partially offset by a slight decline in comparable guest counts. Effective value and marketing campaigns centered on core menu items, strong execution at the restaurant level and ongoing growth in digital and delivery channels collectively supported modestly positive comparable sales. Our model estimated the U.S. comps to decrease 1.1%.
International Operated Markets: Segmental comps decreased 2.1% against 8.3% growth in the year-ago quarter. The performance of the segment was affected by declining comparable sales in several markets, with France and the United Kingdom being significant contributors to this downturn. We anticipated a decrease of 0.3% from the year-ago levels.
International Developmental Licensed Segment: Segmental comparable sales registered a 3.5% decline against 10.5% growth in the prior-year quarter. The ongoing conflict in the Middle East and declining comparable sales in China outweighed the positive sales performance in Latin America.
Operating Highlights & Expenses of McDonald's
In the third quarter, McDonald’s total operating costs and expenses were $3.69 billion, up 6% year over year.
Operating income dropped 1% year over year to $3.19 billion. Net income totaled $2.26 billion, down 3% year over year.
Zacks Rank & Key Picks
MCD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail – Restaurants industry are:
CAVA Group, Inc. (CAVA - Free Report) sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CAVA has a trailing four-quarter earnings surprise of 257.7%, on average. The stock has surged 345.5% in the past year. The Zacks Consensus Estimate for CAVA’s 2024 sales and EPS indicates a rise of 29.1% and 104.8%, respectively, from the year-ago period’s levels.
Abercrombie & Fitch Co. (ANF - Free Report) presently carries a Zacks Rank #2 (Buy).
ANF has a trailing four-quarter earnings surprise of 28%, on average. The stock has surged 131.4% in the past year. The Zacks Consensus Estimate for ANF’s fiscal 2024 sales and EPS indicates growth of 13% and 63.4%, respectively, from the year-ago period’s levels.
Boot Barn Holdings, Inc. (BOOT - Free Report) currently carries a Zacks Rank #2. BOOT has a trailing four-quarter earnings surprise of 6.8%, on average. The stock has risen 132.2% in the past year.
The consensus estimate for BOOT’s fiscal 2025 sales and EPS indicates growth of 12.1% and 10.9%, respectively, from the year-ago period’s levels.