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McDonald’s earnings are out, and they’ve failed to beat expectations.Earning of $1.23 were right in line with expectations.
Revenue was also right on the mark at 6.54 billion.
Here are some key highlights from the report:
- Global comparable sales increased 7.3%, and benefited from one additional day due to leap year
- Consolidated revenues increased 7% (8% in constant currencies)
- Consolidated operating income increased 8% (9% in constant currencies)
- Diluted earnings per share of $1.23, up 7% (8% in constant currencies)
- Returned $1.5 billion to shareholders through share repurchases and dividends
Because of McDonald’s global reach, this is a good proxy for the global economy.
Lazard Capital Markets offers their take on what we’ll see around the world: “Expect 1Q SSS to fall below consensus: We expect Global: 4.2% (vs. consensus of 6.6%); US: 7.4% (vs. 8.0%); Europe 2.9% (vs. 4.3%); and APMEA of 5.0% (vs. 5.8%). Our estimates imply a conservative slowdown of two-year SSS trends compared to 4Q11. As a result, we also anticipate EPS below Street estimates as we model $1.21 vs. consensus of $1.23.”
See also: 15 mindblowing facts about McDonald’s >