McDonald’s Surpasses Global Sales Projections for Fourth Quarter

McDonald’s recently reported impressive results, surpassing global sales projections for the fourth quarter. The fast-food giant’s performance is noteworthy amidst challenges faced by many restaurant operators to maintain customer traffic.

Sales Performance Highlights

For the last quarter of 2024, McDonald’s achieved a 5.7% increase in global comparable sales. This outpaced analysts’ expectations of a 3.7% rise, as indicated by data from LSEG. Following this announcement, McDonald’s stock price rose by approximately 2% in after-hours trading.

Driving Factors for Success

• Budget-conscious meal deals attracted U.S. diners.
• Strong marketing promotions contributed to solid sales in Australia and Britain.
• The return of the popular Monopoly promotion boosted customer engagement.

For the quarter, McDonald’s reported earnings of $3.12 per share, reflecting a 10.2% increase from $2.83 a year ago. Analysts had anticipated a profit of $3.05 per share.

U.S. Market Growth

In the U.S., McDonald’s largest market, comparable sales increased by 6.8% in the fourth quarter. This marks the third consecutive quarter of growth, a recovery from a 1.4% decline during the same period last year due to an E. coli outbreak.

International Performance

Sales from internationally operated restaurants rose by 4.5%, driven largely by demand in Japan. Other international markets, including Britain, Germany, and Australia, contributed to a 5.2% increase in overall sales.

Company Revenue and Profit Growth

McDonald’s reported a revenue surge of 10% to $7.01 billion. Additionally, net income rose by 7% to $2.16 billion for the quarter.

Future Strategies

The company is also expanding its beverage offerings, a sector that has shown significant profitability. Last year, McDonald’s tested a broader selection of drinks, including cold coffees and crafted sodas, at 500 locations in Wisconsin and surrounding areas. The outcomes of this pilot program will be discussed in an upcoming earnings call.

Industry analysts suggest that a nationwide rollout of these beverage options could enhance same-store sales and customer traffic, thereby providing McDonald’s with an additional avenue for growth alongside its value promotions.