Tue, Nov. 10, 2:01 PM
- In a PR issued in tandem with the company's annual investor meeting (runs from 1PM-5PM ET, webcast), McDonald's (MCD +1.4%) confirms it's not pursuing a REIT for its real estate assets. Exec Pete Bensen: "We have concluded that any potential value creation from a REIT is out-weighed by the significant financial and operational risks to our business and the continued progress of our turnaround."
- Also announced: McDonald's is hiking its quarterly dividend by 5% to $0.89/share (3.1% yield at current levels). The next dividend is payable on Dec. 15 to shareholders on record as of Dec. 1. $30B worth of capital returns are now expected over the 3-year period ending 2016, up from a prior $20B.
- The company now aims to refranchise 4K restaurants, up from a prior target of 3.5K. 93% of restaurants are expected to be franchised by the end of 2018, up from a current 81%. McDonald's is also hiking its G&A cost savings target by $200M/year to $500M/year; it aims to cut its G&A base by nearly 20% from the start of 2015.
- For 2016, on a constant currency basis, McDonald's is aiming for 3%-5% system-wide sales growth, 5%-7% op. income growth, capex of $2B, and a 1-year ROIC in the high teens. ~1K new restaurants are expected to be opened. In actual dollars, consensus is for revenue to drop 3.3% in 2016 to $24.5B.
- Earlier: McDonald's won't pursue REIT
Thu, Oct. 22, 8:15 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales increased 4.0% in Q3 with improvement seen across all segments.
- Comparable-store sales rose 0.9% in the U.S. to mark the first quarterly gain in two years. International Lead Markets segment comparable-store sales rose 4.6%, while the High Growth Markets segment turned a 8.9% comp.
- Total revenue fell 5% after foreign exchange lopped off a full twelve percentage points.
- SG&A expenses +8.2% to $584M.
- The company says it expects positive global comparable-store sales in Q4.
- The turnaround of McDonald's into a "modern, progressive" burger company is underway, says management.
- Previously: McDonald's beats by $0.12, beats on revenue (Oct. 22 2015)
- MCD +6.59% premarket to $109.15.
Thu, Oct. 22, 7:59 AM
Wed, Oct. 21, 5:30 PM
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Thu, Jul. 23, 8:13 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales fell 0.7% in Q2.
- The U.S. comp was -2% on negative traffic, while APMEA was -4.5% and Europe +1.2%.
- Operating margin growth: U.S -6%, Europe -20%, APMEA -26%.
- Foreign currency swings cut into total revenue by eleven percentage points, turning a +1% gain to a -10% drop.
- SG&A expenses -6% to $592.4M.
- The company says it expects positive global comparable-store sales in Q3 with a return of momentum in China a factor.
- The restaurant chain will continue to test the all-day breakfast initiative.
- Previously: McDonald's beats by $0.02, beats on revenue
- MCD -0.24% premarket to $97.35.
Thu, Jul. 23, 7:59 AM
Wed, Jul. 22, 5:30 PM
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Wed, Apr. 22, 8:07 AM
- Global comparable-store sales fell 2.3% for McDonald's (NYSE:MCD) in Q1.
- Foreign exchange swings cut into revenue by 10 full percentage points.
- Comparable-store sales fell in each of the company's geographic regions (U.S. -2.6%, Europe -0.6%, APMEA -8.3%) on weak traffic patterns.
- SG&A expenses fell 6% to $583M during the quarter.
- Total operating expenses were 4% lower to $4.573B which may have helped the company beat EPS estimates.
- The company says a turnaround plan will be detailed on May 4. CEO Steve Easterbrook quotes McDonald's founder Ray Kroc in saying "taking risks" is part of the new operating paradigm.
- MCD +0.82% premarket to $95.61.
Wed, Apr. 22, 8:02 AM
Tue, Apr. 21, 5:30 PM
Fri, Jan. 23, 8:16 AM
- McDonald's (NYSE:MCD) reports global comparable-store sales fell 0.9% in Q4 on soft traffic trends across geographic segments.
- The U.S. comp was down 1.7% in a restaurant sector heading in the other direction (see: Restaurant comps ignited off of $2 gas effect).
- The APMEA comp fell 4.8% on a steep traffic decline amid continued blowback from supplier issues.
- SG&A expenses +5.5% to $662.5M due in part to spending on "positioning" for the future.
- The company heads into 2015 with its lowest capital expenditure budget in five years at $2.0B.
- CEO Don Thompson uses the words "adapting" and "evolve" again in his summary, but warns on further pressure on sales through the first half of the year.
- MCD +1.7% premarket to $92.44.
Fri, Jan. 23, 8:04 AM
Thu, Jan. 22, 5:30 PM
Oct. 21, 2014, 8:02 AM
Oct. 20, 2014, 5:30 PM
Jul. 22, 2014, 9:46 AM
- McDonald's (MCD -2.3%) opens lower after reporting a 1% Y/Y drop in Q2 earnings, which also came in below expectations,
- Global comparable sales from Q2 were relatively flat vs. expectations of a 0.8% gain, reflecting negative guest traffic in all major segments: Same-store U.S. sales fell 1.5% vs. estimates of a 0.3% decline, reflecting negative comparable guest traffic amid "ongoing broad-based challenges," same-store Europe sales fell 1% vs. expectations for 0.7% growth, and Asia/Pacific same-store sales rose 1.1% vs. estimates for 1.5% growth as China sales remain strong.
- Continuing strength in China is questionable following MCD's entanglement in another Chinese food safety scandal; Forbes’ Brian Solomon says, “If, as they have in the past, Chinese customers again spurn fast food chains associated with safety problems, it could negatively impact the earnings for McDonald’s.”
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