Research Desk Line-up: Chipotle Mexican Grill Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 1, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on McDonald's Corp. (NYSE: MCD), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MCD, following the Company's announcement of its financial results, on July 25, 2017, for the second quarter fiscal 2017. The Company's revenue surpassed analysts' expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Restaurants industry. Pro-TD has currently selected Chipotle Mexican Grill, Inc. (NYSE: CMG) for due-diligence and potential coverage as the Company reported on July 25, 2017, its financial results for Q2 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Chipotle Mexican Grill when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MCD; also brushing on CMG. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=MCD

http://protraderdaily.com/optin/?symbol=CMG

Earnings Reviewed

For three months ended June 30, 2017, McDonald's global comparable sales increased 6.6% compared to an increase of 3.1% in Q2 FY16, reflecting positive guest counts in all segments.

During Q2 FY17, McDonald's revenue decreased 3.5% to $6.05 billion on a y-o-y basis from $6.27 billion in Q2 FY16. The decline was mainly attributable to the impact of the Company's strategic re-franchising initiative. The revenue surpassed analysts' expectations of $6.00 billion. During Q2 FY17, McDonald's selling, general, and administrative (SG&A) expenses decreased 11.9% to $525.4 million from $596.1 million in Q2 FY16.

For the reported quarter, McDonald's operating income increased 23.7% to $2.30 billion on a y-o-y basis from $1.86 billion in Q2 FY16. The improvement was mainly due to strong restaurant operating performance and G&A savings across all segments.

During Q2 FY17, the Company's net income increased 27.3% to $1.40 billion on a y-o-y basis from $1.10 billion in Q2 FY16. For the reported quarter, McDonald's diluted EPS increased 36% to $1.70 on a y-o-y basis from $1.25 in the same quarter last year.

Segment Details

US -During Q2 FY17, McDonald's US segment's comparable sales increased 3.9% compared to an increase of 1.7% in Q1 FY17. The increase was mainly due to value and premium offers on the menu and operational initiatives of past few years.

For the reported quarter, the segment's operating income increased 5%, mainly due to higher sales-driven franchised margin dollars, G&A savings, and higher gains on sales of restaurants.

International Lead Markets - During Q2 FY17, McDonald's International Lead Markets segment's comparable sales increased 6.3% compared to an increase of 2.8% in Q1 FY17. The increase was mainly due to better performance in Canada and Germany and increased results across all other markets.

For the reported quarter, the segment's operating income increased 13% on a constant currency basis, primarily due to sales-driven improvements in franchised margin dollars.

High-Growth Markets - During Q2 FY17, McDonald's High-Growth Markets segment's comparable sales increased 7% compared to an increase of 3.8% in Q1 FY17. The increase was mainly due to better results across the segment.

For the reported quarter, the segment's operating income increased 28% on a constant currency basis, primarily due to lower depreciation expense of accounting treatment associated with the pending sale of the China and the Hong Kong businesses.

Foundational Markets - During Q2 FY17, McDonald's Foundational Markets segment's comparable sales increased 13% compared to an increase of 10.7% in Q1 FY17. The increase was due to better results across the segment's geographic region.

Outlook

For FY17, McDonald is expecting SG&A expenses to decrease 7%-8% in a constant currency. The Company expects effective income tax to be in the range of 31%-33% for fiscal 2017. For FY17, McDonald estimates capital expenditure to be $1.7 billion.

Stock Performance

On Monday, July 31, 2017, the stock closed the trading session at $155.14, slightly down 0.46% from its previous closing price of $155.85. A total volume of 4.28 million shares have exchanged hands, which was higher than the 3-month average volume of 3.34 million shares. McDonald's' stock price soared 9.91% in the last three months, 26.11% in the past six months, and 31.87% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 27.46%. The stock is trading at a PE ratio of 25.35 and has a dividend yield of 2.42%. At Monday's closing price, the stock's net capitalization stands at $127.34 billion.

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SOURCE: Pro-Trader Daily