McDonald’s (MCD) missed the mark to end 2024 as the fast food chain faced an underperforming stock, lackluster sales, and an E. coli outbreak.
Revenue for the fourth quarter decreased 0.28% from a year ago to $6.39 billion, missing expectations of $6.45 billion. Adjusted earnings per share of $2.80 was also lower than Wall Street’s estimate of $2.84.
Global same store sales for the quarter, which ended Dec. 31, was up 0.4%, compared to an expected decline of 0.91%. But US same-store sales is down 1.4% year over year, as an E. coli outbreak offset momentum in late October. The company alluded to a decline in check growth, offset by slightly higher guests count.
Many on the Street hope its fourth quarter results are the “low point in recent history for the brand,” as Citi analyst Jon Tower wrote in a note to clients.
In 2025, the fast food giant aims to regain foot traffic with its McValue menu platform and new offerings in the form of chicken tenders, strips, and the return of snack wraps.
Here’s what McDonald’s reported for fourth quarter results, compared to Wall Street estimates, per Bloomberg consensus data:
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Revenue: $6.39 billion versus $6.45 billion
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Adjusted earnings per share: $2.80 versus $2.84
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Global same-store sales growth: +0.4% versus -0.91%
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US same-store sales growth: -1.4% versus -0.35%
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International-owned same-store sales growth: -0.1% versus -1.22%
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International franchised same-store sales growth: +4.1% versus -0.38%
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Here’s what McDonald’s reported for the full fiscal 2024 year, compared to Wall Street estimates, per Bloomberg consensus data:
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Revenue: $25.92 billion versus $25.99 billion
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Adjusted earnings per share: $11.39 versus $11.74
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Global same-store sales growth: -0.1% versus -0.39%
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US same-store sales growth: +0.2% versus +0.44%
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International-owned same-store sales growth: -0.2% versus -0.50%
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International franchised same-store sales growth: -0.3% versus -1.39%
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And January was another tough month for McDonald’s despite optimism around the McValue platform.
“It sounds like January was not a good month across the board, mostly driven by really poor weather in every region, snow, extreme cold,” BTIG analyst Peter Saleh told Yahoo Finance over the phone. The conditions make it difficult to assess whether the value menu drove incremental foot traffic.
Ahead of the earnings report, TD Cowen’s Andrew Charles said he’d be looking for company-operated stores’ margins and any impact from the value offerings.
Net income fell 1% to $2.02 billion during the quarter, and down 3% for the year to $8.22 billion.
