McDonald's (MCD) Tops Q4 EPS by 3c

McDonald's (NYSE: MCD) reported Q4 EPS of $1.44, $0.03 better than the analyst estimate of $1.41. Revenue for the quarter came in at $6.03 billion versus the consensus estimate of $5.99 billion.

Comps fall 1.3% in the U.S. Comparable sales for the International Lead segment increased 2.8% for the quarter. Fourth quarter comparable sales increased 4.7% in the High Growth segment led by strong performance in China and positive results across the entire segment. Fourth quarter comparable sales rose 11.1% in the Foundational markets led by very strong performance in Japan and certain markets in Latin America, as well as solid results across the segment's remaining geographic regions

"Throughout 2016, we worked diligently to lay the groundwork for our long-term future. We focused on driving changes in our menu, restaurants and technology to deliver an enhanced McDonald's experience for our customers around the world," said McDonald's President and Chief Executive Officer Steve Easterbrook. "We applied the necessary rigour and discipline to strengthen the Company and our financial performance. Our efforts yielded a more streamlined and focused organisation that generated solid fourth quarter and full year results, including our strongest annual global comparable sales growth since 2011 along with record franchisee cash flows in many of our major markets. I am confident that we're on the right path as we pursue our goal of being recognised by our customers as the modern, progressive burger company."

Fourth quarter highlights:

• Global comparable sales increased 2.7%, including positive comparable sales in the International Lead, High Growth and Foundational segments
• Consolidated revenues decreased 5% (3% in constant currencies), due to the impact of refranchising
• Consolidated operating income increased 5% (7% in constant currencies)
• Diluted earnings per share of $1.44 increased 10% (12% in constant currencies)

Steve Easterbrook concluded, "For McDonald's, 2016 was a year of purposeful change as we focused on the key elements of our turnaround plan - strengthening our business to drive long-term sustainable growth by sharpening our focus on our customers, right-sizing our structure and putting the right talent in place to lead the Company into the future. I'm confident that we are well-positioned to transition to a longer-term focus in 2017. Our refranchising efforts and financial discipline will enable us to direct our capital and G&A resources towards new strategic opportunities to deliver on our long-term strategy. We look forward to providing further details on our strategy and financial targets later this quarter. As we begin the first quarter of 2017, we are mindful of the comparison we face against first quarter 2016 results, which benefited from leap year, favourable weather and continued momentum from All-Day Breakfast in the U.S."

For earnings history and earnings-related data on McDonald's (MCD) click here.

You May Also Be Interested In

• Tesla touts acceleration of new models, but Q1 results fall short of estimates
• Eastgroup Properties (EGP) Tops Q1 EPS by 17c, provides guidance
• Baker Hughes Company (BKR) Tops Q1 EPS by 4c, Beats on Revenue