McDonald's just reported its earnings, and here's a summary:
๐๐ซ๐จ๐๐ข๐ญ๐๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐ซ๐๐ฆ๐๐ข๐ง๐ฌ ๐จ๐ฎ๐ญ๐ฌ๐ญ๐๐ง๐๐ข๐ง๐
Despite inflationary pressures and continued investments:
Revenue increased 4%
Operating income increased 3%
Net income increased 5%
EPS increased 6%
The ability to grow earnings faster than revenue continues to demonstrate the strength of McDonald's highly profitable franchise model
๐๐จ๐ฌ๐ข๐ญ๐ข๐ฏ๐ ๐๐จ๐ฆ๐ฉ๐๐ซ๐๐๐ฅ๐ ๐ฌ๐๐ฅ๐๐ฌ ๐ข๐ง ๐๐ฏ๐๐ซ๐ฒ ๐๐ฎ๐ฌ๐ข๐ง๐๐ฌ๐ฌ ๐ฌ๐๐ ๐ฆ๐๐ง๐ญ
The biggest positive from this quarter is that every operating segment returned to positive comparable sales growth:
Global: +1.3%
U.S.: +0.8%
International Operated Markets: +1.5%
International Developmental Licensed Markets: +1.9%
After several quarters of uneven regional performance, McDonald's achieved broad-based growth again.
๐๐จ๐ฒ๐๐ฅ๐ญ๐ฒ ๐๐๐จ๐ฌ๐ฒ๐ฌ๐ญ๐๐ฆ ๐๐จ๐ง๐ญ๐ข๐ง๐ฎ๐๐ฌ ๐ญ๐จ ๐๐ฑ๐ฉ๐๐ง๐ ๐ซ๐๐ฉ๐ข๐๐ฅ๐ฒ
One of the most impressive longterm trends remains McDonald's digital ecosystem. Highlights:
Loyalty sales exceeded $40 billion over the last twelve months.
Loyalty sales grew more than 20% year-over-year.
Active 90-day loyalty users increased 13% to nearly 220 million customers worldwide.
This strengthens customer retention while creating valuable opportunities for personalized marketing and higher average spending.
๐ ๐ซ๐๐ง๐๐ก๐ข๐ฌ๐ ๐ฆ๐จ๐๐๐ฅ ๐๐จ๐ง๐ญ๐ข๐ง๐ฎ๐๐ฌ ๐ญ๐จ ๐ฌ๐ก๐ข๐ง๐
McDonald's franchise-heavy business model once again demonstrated its strength. Although comparable sales growth was modest, revenue still increased 4%, while EPS grew 6%.
๐๐ฎ๐ข๐๐๐ง๐๐
Management remains confident!
CEO Chris Kempczinski stated that the company is "primed for the next era of long-term growth" and emphasized continued focus on improving execution while leveraging the company's successful global operating model.
๐๐ข๐ฏ๐ข๐๐๐ง๐
Another dividend increase expected later this year. McDonald's traditionally announces its annual dividend increase in September. Based on current earnings and historical payout levels, another dividend increase this autumn appears highly likely.
McDonald's has now increased its dividend for 49 consecutive years, and another increase this year would bring it to 50 consecutive annual increases - a remarkable milestone.
๐๐๐ซ๐ฌ๐จ๐ง๐๐ฅ ๐๐ฎ๐ฆ๐ฆ๐๐ซ๐ฒ
McDonald's delivered another solid quarter that reinforces the strength of its business model. I didn't expect anything else, anyway. It's good to see that earnings once again grew faster than revenue, highlighting the efficiency of McDonald's franchise model.
The stock price has really taken a hit in recent weeks, which I see as a rare opportunity with this high-quality company. In my view, the stock can only go up again in the long term! nfa $MCD (McDonald's)... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
The return to positive comparable sales across every segment matters more than the headline EPS growth, because it suggests the improvement isnโt confined to one geography. The next question is whether loyalty-led traffic can keep supporting growth without heavier discounting or weaker franchisee ec... Show More
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