McDonald’s Q2 2018 Financial Results and Earnings
McDonald’s Corporation (MCD) is the leading global foodservice retailer with nearly 37,000 locations in over 100 countries. The Corporation operates and franchises McDonald’s restaurants in the US and across the globe with over 90% of its restaurants owned and operated by local, independent businessmen and women.
McDonald’s Corporation announced their financial results July 26, 20418 for Q2 2018 which ended June 30, 2018. Earnings were reported at $1.90 per share, missing the earnings estimates of $1.965 per share.
McDonald’s President and CEO, Steve Easterbrook stated, “We’re seeing good performance across our business as our customers tell us that they value and appreciate the moves we’re making to elevate the McDonald’s experience. We’re pleased with the results of our international business and the progress we’re making in the U.S. on executing on our Velocity Growth Plan priorities. We’ve now marked 12 consecutive quarters of positive comparable sales, and we are confident that we’re executing the right strategy to achieve long-term, profitable growth.”
Despite missing estimates, the food service retailer saw Q2 comparable sales in the U.S. increased 2.6% caused by growth in the average check as a result of product mix shifts and menu price increases. Operating income saw a 7% decrease due in part to the strategic restructuring charge.
Some second quarter highlights include:
- 4% increase in global comparable sales
- 5% systemwide sales increase in constant currencies
- 1% consolidated operating income decreased, due primarily to $92 million in strategic restructuring charges. Without the charges, consolidating operating income increased 2%
- $2.5 billion was returned to shareholders through share repurchases and dividends
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive!