McDonald’s (MCD, Financials) reported mixed fourth-quarter 2024 results, with U.S. sales declining 1.4% due to an E. coli outbreak, while global comparable sales showed slight growth.
Emphasizing value offers, food safety improvements, and digital development, CEO Chris Kempczinski recognized the setback but voiced hope for a 2025 return.With adjusted earnings per share of $2.83, the fast-food behemoth slightly missed analysts’ forecasts of $2.86. In line with expectations, revenue came at $6.48 billion. Supported by franchise profitability and top-line expansion, operating margins in 2024 reached 46.3%; a 2025 objective falls in the mid-to-high 40% area.By 2025 McDonald’s wants to establish 2,200 additional outlets, 1,600 in China and 1,600 in International Developmental Licenced regions. From expansion, the business projects at least 2% system-wide revenue increase.Digital usage keeps driving performance; revenues of loyalty programs in 2024 will exceed $30 billion. By 2027 the corporation wants that number to rise to $45 billion with 250 million active users.Management remained cautiously hopeful, pointing to anticipated late 2024 traffic gains resulting from marketing and value propositions. Critics of the U.S. recovery’s speed, however, pointed to issues with consumer spending, inflation, and poor performance in the UK and Australia.McDonald’s is dedicated to its “Accelerating the Arches” approach despite macroeconomic constraints; it uses digital involvement, menu innovations, and market growth to promote visitor count and profitability.
This article first appeared on GuruFocus.
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