Visitors attend a New Year's event held by McDonald's in Shanghai, China, on January 25, 2024.
Costofoto | Nurfoto | fake images
McDonald's It is expected to report its fourth-quarter earnings before the bell on Monday.
Here's what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expect:
- Earnings per share: $2.82 expected
- Revenue: $6.45 billion expected
The fast food giant started 2023 strong, as it enjoyed double-digit growth in same-store sales and increased traffic in the first half of the year. But during the third quarter, McDonald's said lower-income consumers were cutting back more sharply, hurting traffic to its U.S. restaurants. In the fourth quarter, Wall Street expects the bumpy road to continue.
Analysts forecast that McDonald's comparable quarterly sales grew just 4.7%, a far cry from the 10.9% it reported a year ago. The chain's price increases have slowed and industry-wide foot traffic fell in November and December.
Chief Executive Chris Kempczinski also warned investors that the war between Israel and Hamas is hurting its sales, both in the Middle East and in some markets outside it. Social media users have been calling for a boycott of McDonald's after its Israeli franchise offered discounts to soldiers.
Starbucks was also the target of boycotts related to the Middle East. The coffee giant said its U.S. traffic declined as casual customers stopped visiting its coffee shops.
By 2024, Wall Street expects McDonald's to earn $12.53 per share, up 6.1% from last year, and generate $27.14 billion in revenue, up 6.3%.
McDonald's shares have risen 12% over the past year, giving it a market value of around $215 billion.
