McDonald's Q4 Earnings Top Estimates; Expects Inflationary Pressures To Continue In 2023

Shivani Kumaresan
·1 min read

  • McDonald's Corp (NYSE: MCD) reported a fourth-quarter FY22 sales decline of 1.4% year-on-year to $5.93 billion, beating the consensus of $5.69 billion.

  • Global comparable sales rose 12.6%, with 10.3% growth in the U.S.

  • Digital Systemwide sales in the top six markets were over $7 billion for the quarter, representing more than 35% of their Systemwide sales.

  • Sales by company-operated restaurants declined 13% Y/Y to $2.2 billion, while sales from franchised restaurants rose 6.9% to $3.6 billion.

  • Total operating costs and expenses dropped 7.4% Y/Y to $3.3 billion. Operating income for the quarter rose 8% to $2.58 billion.

  • Adjusted EPS of $2.59 beat the analyst consensus of $2.46.

  • The company held $2.58 billion in cash and equivalents as of Dec. 31, 2022. Cash provided by operating activities for the year totaled $7.4 million.

  • "While we expect short-term inflationary pressures to continue in 2023, we remain highly confident in Accelerating the Arches, which now includes a greater emphasis on new restaurant openings," said CEO Chris Kempczinski.

  • Price Action: MCD shares are trading lower by 2.61% at $263.81 on the last check Tuesday.

  • Photo Via Company

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This article McDonald's Q4 Earnings Top Estimates; Expects Inflationary Pressures To Continue In 2023 originally appeared on Benzinga.com

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