McDonald's is about to report earnings. Here's what to expect

Visitors are attending a New Year occasion held by McDonald’s in Shanghai, China, on January 25, 2024. 

Costfoto | Nurphoto | Getty Images

McDonald’s is anticipated to report its fourth-quarter earnings earlier than the bell on Monday.

Here’s what Wall Street analysts surveyed by LSEG, previously often known as Refinitiv, expect:

  • Earnings per share: $2.82 anticipated
  • Revenue: $6.45 billion anticipated

The fast-food big began off 2023 sturdy, because it loved double-digit same-store gross sales progress and visitors will increase within the first half of the yr. But through the third quarter, McDonald’s stated low-income customers have been pulling again their spending extra sharply, hurting visitors to its U.S. eating places. In the fourth quarter, Wall Street expects the bumpy street to proceed.

Analysts are forecasting that McDonald’s quarterly same-store gross sales grew simply 4.7%, a far cry from the ten.9% it reported a yr in the past. The chain’s worth hikes have slowed down, and foot visitors throughout the business fell in November and December.

CEO Chris Kempczinski has additionally warned buyers that the Israel-Hamas warfare is hurting its gross sales, each within the Middle East and in some markets exterior of it. Social media customers have been calling for a boycott of McDonald’s after its Israeli franchisee provided reductions to troopers.

Starbucks additionally discovered itself the goal of boycotts associated to the Middle East. The espresso big said its U.S. visitors declined as occasional prospects stopped visiting its cafes.

For 2024, Wall Street expects McDonald’s will earn $12.53 per share, up 6.1% from final yr, and generate $27.14 billion in income, a rise of 6.3%.

McDonald’s inventory has risen 12% over the past yr, giving it a market worth of about $215 billion.

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