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.
US UPDATES OVER THE NEXT 7 DAYS
QUARTERLY RESULTS
7 Feb: Cboe Global, Fortive, Kimco Realty
10 Feb: Arch Capital, Loews, McDonald’s, ON Semiconductor
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