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A return to growth in international markets in focus at McDonald's

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Wall Street analysts are expecting McDonald’s (MCD:NYSE) to report a 4.4% year-on-year decline in EPS (earnings per share) to $2.82 for the fourth quarter as revenues nudge-up by 1% to $6.48 billion, when it reports on 10 February.
The Golden Arches delivered a positive earnings surprise in the third quarter, beating EPS estimates by around 1.6%. Earnings revisions have slipped by nearly 2% over the last few months, which lowers the bar for another earnings beat.
Investors will be keen to know if US store visits have recovered from the E-Coli outbreak in October which forced the hamburger chain to temporarily pause sales of Quarter Pounders in a fifth of its 14,000 restaurants.
There will also be interest in how the launch of the everyday value menu in January 2025 is progressing as the hamburger chain looks to regain its value credentials in a market which is seeing more people choosing to cook at home.
Outside its home turf McDonald’s will be hoping to regain momentum in international markets after global sales fell 1.5% in the third quarter, the largest decline in four years.
Weaker consumer spending in China and the war in the Middle East have impacted international sales alongside sluggishness in the UK and France.
Despite these headwinds McDonald’s reaffirmed full year revenue and margin guidance at the Q3 results and said it expected no material impact from the E-Coli outbreak.
QUARTERLY RESULTS
7 Feb: Cboe Global, Fortive, Kimco Realty
10 Feb: Arch Capital, Loews, McDonald’s, ON Semiconductor
11 Feb: AIG, Carrier Global, Coca Cola, DoorDash, Ecolab, Gilead, S&P Global, Vertex
12 Feb: Albermarle, Biogen, Cisco, Equinix, Global Payments, Kraft Heinz, MGM, Paramount Global, Paycom Soft, Rollins, Tyler Technologies, Ventas
13 Feb: Applied Materials, Datadog, Deere & Company, Duke Energy, Molson Coors Brewing, Moody’s, Pool
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