Home » McDonald’s shares fall as first-quarter comparable revenue growth misses forecasts By Investing.com

McDonald’s shares fall as first-quarter comparable revenue growth misses forecasts By Investing.com

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McDonald’s shares fall as first-quarter comparable revenue growth misses forecasts By Investing.com

McDonald’s Corporation (NYSE:) reported that first-quarter earnings and same-store sales missed financial analysts’ forecasts, causing its stock price to decline 1.7% in the pre-market trading session on Friday. Tuesday.

The quick-service restaurant chain announced first-quarter earnings per share (EPS) of $2.70, slightly below analysts’ average forecast of $2.72. The company’s revenue reached $6.17 billion, slightly beating average forecasts of $6.16 billion.

Same-store sales increased 1.9%, a substantial decline from the 12.6% increase recorded in the same period last year and marginally lower than the 2.33% expected.

In the U.S., same-store sales saw a 2.5% increase, also down from the previous year’s 12.6% increase and just below the expected 2.55%.

Total operating income for the quarter increased 8%. McDonald’s recalled that this figure includes pre-tax charges totaling $35 million for the current year and $180 million for the prior year, primarily due to costs related to the restructuring initiative called ” Acceleration of the organization”.

If these charges had not been included, total operating profit would have seen a slight increase of 2%.

“Global same-store sales growth in the first quarter represents the thirteenth consecutive quarter of positive same-store sales growth, with a cumulative increase of 30% over the past four years,” said Chris Kempczinski, Chief Executive Officer.

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“As we look to the remainder of 2024 and beyond, we are committed to capitalizing on the competitive strengths inherent in our ‘Accelerating the Arches’ strategy and increasing our market share within the quick-service restaurant sector to drive sustained growth.”

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This article was produced and translated with the help of artificial intelligence and was reviewed by an editor. For further details, please see our terms and conditions.

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