McDonald’s tops Q4 earnings, U.S. same-store sales up 10.3%

Yahoo Finance Live anchors discuss fourth-quarter earnings for McDonald’s.

Video Transcript


BRIAN SOZZI: And let's stay on this theme of economic stress or lack thereof. McDonald's topping estimates for the fourth quarter, as US same-store sales grew over 10% driven by higher menu prices and higher ticket items. And this-- these results again from McDonald's blew away estimates. Global same-store sales of 12.6%. US up 10.3%. Double-digit gains in all regions of operation for McDonald's.

Where McDonald's is getting dinged is their operating margins came in below analyst consensus. And that is raising the question, are they driving their sales by focusing too much on value meals? So something to tuck away there. But, again, to see McDonald's put up these results tells me, you know, not all is norm out there in the economy and you may be reaching for $6.00 Big Macs instead of $25 Olive Garden nights out.

BRAD SMITH: Well, when there is any type of weakness that we see in the consumer discretionary spending and then, additionally, in the type of spending that they're doing in that restaurant experience or that dining experience, you got to protect the McNuggets if you're the McDonald's brand out here. Because at the end of the day, the Golden Arches is gonna be able to continue to cement itself as one of those value plays for consumers that they continue to maintain mindshare.

And how they're gonna continue to maintain mindshare over the course of any type of shallow or mild recession, whatever that may be, is continuing to lean further into not just the digital investments that they've made, but also how they can connect those digital investments with some of the value menu items, as well, that they've put on the table.



JULIE HYMAN: --if they're spending too much on that, they're gonna get dinged. And that's what's happening today. That margin--

BRIAN SOZZI: So is the waistline.

JULIE HYMAN: That margin-- that margin number is why--

BRAD SMITH: Super size me.

JULIE HYMAN: --the stock is down.

BRIAN SOZZI: Well, this quarter driven for McDonald's by the McRib. If you really want to tie everything together-- I saw news of Impossible Foods laying off 20% of his workforce. Beyond has cutback, too. Maybe people just reaching for this cheap meat instead of more higher-end plant-based meat.


BRAD SMITH: No. No, I'm gonna-- I'm protecting the waistline on the one. Not doing the McRib, I'm sorry.