McDonald’s (MCD) Q4 2024 Earnings

McDonald’s Set to Report Q4 Earnings Amid Rocky Quarter

Earnings Expectations

McDonald’s is set to report its fourth-quarter earnings before the bell on Monday, with Wall Street analysts surveyed by LSEG expecting the company to report:

• Earnings per share: $2.83
• Revenue: $6.44 billion

Challenges in the Quarter

The fast-food giant had a rocky quarter, with sales initially picking up after a summer slowdown due to its value meal and the permanent addition of its Chicken Big Mac in early October. However, several weeks into the quarter, the Centers for Disease Control and Prevention (CDC) linked a fatal E. coli outbreak to its Quarter Pounder burgers. McDonald’s switched suppliers for its slivered onions, the ingredient fingered as the likely culprit for the outbreak. In early December, the CDC declared the outbreak officially over.

Impact on Sales

Despite the outbreak being over, traffic to McDonald’s U.S. restaurants fell steeply, particularly in the states affected, in the days following the news. Customers have slowly been returning, but analysts are expecting the company’s U.S. same-store sales to fall 0.6% in the quarter, according to StreetAccount estimates. McDonald’s overall same-store sales are projected to have fallen 1%, marking the third straight quarter of same-store sales declines for the burger chain.

Stock Performance

Shares of McDonald’s have risen just 2% over the past year, raising its market cap to roughly $211 billion.

Conclusion

McDonald’s faces significant challenges in the quarter, including the E. coli outbreak and the impact on sales. While the company’s same-store sales are expected to decline, its stock performance has been relatively stable. The company will need to continue to adapt to the changing consumer landscape and address concerns around food safety to regain its footing.

Frequently Asked Questions

Q: What are the earnings expectations for McDonald’s Q4?
A: Wall Street analysts surveyed by LSEG expect McDonald’s to report earnings per share of $2.83 and revenue of $6.44 billion.

Q: What were the key challenges in McDonald’s Q4?
A: The company faced a fatal E. coli outbreak linked to its Quarter Pounder burgers, which affected sales and customer traffic.

Q: How did McDonald’s stock perform in the past year?
A: Shares of McDonald’s have risen just 2% over the past year, raising its market cap to roughly $211 billion.