McDonald’s Corporation (NYSE: MCD) announced its fourth-quarter 2023 earnings on Monday, revealing a mixed performance. The fast-food giant reported adjusted earnings per share (EPS) of $2.95, surpassing the consensus estimate of $2.82. However, sales of $6.41 billion fell slightly short of the consensus expectation of $6.45 billion.
Despite falling slightly short on sales, McDonald’s reported positive growth in its same-store sales. In the United States, same-store sales rose by 4.3% in the fourth quarter, while globally, they increased by 3.4%. The company attributed this growth to menu price hikes, effective marketing campaigns, and the continuous expansion of its digital and delivery services.
While the international developmental licensed markets segment experienced sluggish growth, with same-store sales increasing by just 0.7%, McDonald’s pointed to the ongoing war in the Middle East as a contributing factor. On the other hand, the international operated markets segment reported a 4.4% growth in same-store sales, driven by strong performance in the U.K., Germany, and Canada, partially offset by negative comparable sales in France.
One notable highlight for the company was the success of its loyalty program, MyMcDonald’s Rewards. The program experienced a 45% growth in membership in 2023. System sales to loyalty members exceeded $20 billion for the fiscal year and reached $6 billion in the fourth quarter across McDonald’s 50 largest markets.
CEO Chris Kempczinski acknowledged the challenges faced by the company in the current consumer environment but expressed confidence in the resilience of McDonald’s business. He stated, “We remain confident in the resilience of our business amid macro challenges that will persist in 2024.”
Despite the mixed earnings report, McDonald’s shares experienced a minor decline in premarket trading, with a 0.84% decrease to $294.55 per share.
Overall, McDonald’s demonstrated its ability to adapt and grow amidst challenging market conditions. The company’s focus on digital expansion, effective marketing strategies, and loyalty programs will likely continue to drive its success in the coming year.
