Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  McDonald's Corporation    MCD

Delayed Quote. Delayed  - 02/23 04:59:58 pm
128.445 USD   +0.47%
11:11a MCDONALD : Beverage service By Leslie Patton
02/22 MCDONALD : Beverage service By Leslie Patton Bloomberg
02/21 MCDONALD : Owner to raze, replace McDonald's
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

McDonald's Corporation : Economic Woes Hamper McDonald's February Sales

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/08/2012 | 08:47pm CET

--Global same-store sales rise 7.5% in February; below analysts' expectations

--McDonald's says conomic issues are impacting 1Q operating income growth

--Shares drop 3.4% to $96.94; day's worst performer in DJIA and S&P 500

(Updates with additional information throughout.)

 
   By Annie Gasparro and Melodie Warner 
   Of  
 

McDonald's Corp. (MCD) says its underwhelming sales growth in February could hinder its profit this quarter, as economic uncertainty in Europe and higher food costs in the U.S. curb consumers' appetitze for spending.

McDonald's shares were down 3.4% to $96.94 Thursday when the company reported that its global sales at restaurants open at least 13 months rose 7.5% in February, below the 8.15% same-store sales increase analysts surveyed by Consensus Metrix were expecting.

"The current operating environment includes persistent economic uncertainty, austerity measures in Europe and commodity and labor-cost pressures, particularly in the U.S.," McDonald's said in a statement. "These challenges are expected to impact the company's first-quarter operating income growth."

Over the past few years, McDonald's has been able to boost guest traffic and sales faster than most of its competitors as its increasingly diverse menu--ranging from value offerings to higher-margin products like blended-ice drinks--and growing global operations help it manage through the tough economy. McDonald's stock reached all-time highs in 2011--above $100--and was one of the highest performers of the Dow Jones Industrial Average, up 31% for the year.

Yet Thursday, it's stock drop made it the day's worst performer of both the Dow industrials and the S&P 500.

McDonald's said in January it expects commodity costs this year to rise 4.5% to 5.5% in the U.S. and 2.5% to 3.5% in Europe, with the most pressure in the first half of the year. As a result, it will likely push menu prices up--a sensitive issue for restaurants these days, given continued penny-pinching among consumers.

In addition to the economic headwinds, added pressures from foreign-currency translation and extra expenses are weighing on McDonald's profit outlook this year. The company said in January it estimates currency exchange will reduce its earnings by 16 cents to 18 cents a share this year, driven by a weaker euro, while it will also incur higher spending from a franchisee convention, the London Summer Olympics and technology initiatives this year.

The bright spot of its latest sales data is at home. In February, McDonald's U.S. same-store sales rose 11.1%, topping analysts' growth estimate of 8.59%, reflecting strong demand for its new Chicken McBites popcorn chicken and Filet-O-Fish promotions.

In Europe, same-store sales grew 4%, short of the analysts' forecast for a 6.64% increase. McDonald's attributed the shortfall to severe winter weather in certain markets.

The Asia/Pacific, Middle East and Africa region posted a 2.4% increase while analysts projected an 8.11% rise. Strong Australia sales were somewhat offset by Japan and the shift of the Chinese New Year to January.

McDonald's February system-wide sales rose 9.4%, or 9.7% in constant currencies.

-By Annie Gasparro and Melodie Warner, Dow Jones Newswires; 212-416-2244; annie.gasparro@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MCDONALD'S CORPORATION
11:11a MCDONALD : Beverage service By Leslie Patton
02/22 MCDONALD : Beverage service By Leslie Patton Bloomberg
02/21 MCDONALD : Owner to raze, replace McDonald's
02/21 MCDONALD'S TAIWAN IN FINAL STAGE OF : report
02/20 MCDONALD : Hong Kong union joins critics of McDonald's HK, China sale, sees pay ..
02/17 MCDONALD : Subway Vietnam frantically looks for franchise partners
02/17 MCDONALD : shut down due to sinkhole
02/17 Spotify-backed Soundtrack Your Brand raises $22 million for expansion
02/17 MCDONALD : In 'The Founder,' cutthroat big business, supersized
02/15 MCDONALD : Four arrested in armed robbery of McDonald's restaurant in Gulfport
More news
Sector news : Quick Service Restaurants
01:23p BID : South Africa's Bidcorp can tap $1.2 billion for acquisitions
02/14DJIn Trump Age, Taking a Different Tack on Workplace Diversity
02/10DJYUM CHINA : Brands Sales Rise Following China Spinoff -- WSJ
02/09 YUM BRANDS : profit tops expectations as KFC, Taco Bell deliver
02/09DJYUM CHINA : Revenue, Same-Store Sales Rise
More sector news : Quick Service Restaurants
News from SeekingAlpha
06:59a WALL STREET BREAKFAST : Earnings Season Winds Down
02/22 Free Market Capitalist January Dividend Income
02/22 National beverage promotion on tap from McDonald's
02/22 3 Great Dividend Stocks To Optimize Income Going Ex-Dividend Very Soon
02/21 THE HABIT : High Growth Restaurant Trading Like A Value Stock
Advertisement
Financials ($)
Sales 2017 21 944 M
EBIT 2017 8 266 M
Net income 2017 5 030 M
Debt 2017 26 039 M
Yield 2017 2,97%
P/E ratio 2017 20,67
P/E ratio 2018 19,34
EV / Sales 2017 6,03x
EV / Sales 2018 6,70x
Capitalization 106 172 M
More Financials
Chart MCDONALD'S CORPORATION
Duration : Period :
McDonald's Corporation Technical Analysis Chart | MCD | US5801351017 | 4-Traders
Full-screen chart
Technical analysis trends MCDONALD'S CORPOR...
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 32
Average target price 131 $
Spread / Average Target 2,6%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Stephen J. Easterbrook President, Chief Executive Officer & Director
Enrique Hernandez Non-Executive Chairman
James R. Sappington Executive VP-Operations and Technology Systems
Kevin M. Ozan Chief Financial Officer & Executive Vice President
Andrew J. McKenna Chairman-Emeritus
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
MCDONALD'S CORPORATION5.19%106 172
YUM! BRANDS, INC.6.85%24 259
CHIPOTLE MEXICAN GRILL..14.59%12 304
YUM CHINA HOLDINGS INC2.41%10 262
DOMINO'S PIZZA, INC.18.64%8 819
DOMINO'S PIZZA ENTERPR..-14.80%3 807
More Results