McDonald's Stock Slides After Q4 Earnings Miss

  • McDonald's Corp MCD reported fourth-quarter FY21 sales growth of 13% year-on-year, to $6.01 billion, missing the analyst consensus of $6.03 billion.
  • Global comparable sales increased 12.3% (10.8% on a 2-year basis). U.S. comparable sales increased 7.5% (13.4% on a 2-year basis), with Crispy Chicken Sandwich and McRib promotions contributing to the sales growth. Growth in digital platforms also contributed to the increase.
  • Sales by company-operated restaurants grew 13.7% Y/Y to $2.54 billion, while sales from franchised restaurants rose 13.6% to $3.4 billion.
  • Adjusted EPS of $2.23 missed the analyst consensus of $2.34.
  • Total operating costs and expenses rose 13.9% Y/Y to $3.6 billion.
  • The operating margin was 39.8%, and operating income for the quarter rose 12% to $2.39 billion.
  • McDonald's held $4.7 billion in cash and equivalents as of December 31, 2021. Cash provided by operations for FY21 was $9.1 billion, and free cash flow was $7.1 billion.
  • Price Action: MCD shares are trading lower by 1.00% at $247.35 on the last check Thursday.
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