McDonald's Shares Rise After Q4 Earnings Beat Expectations

McDonald's announced its fourth-quarter earnings and revenue, which exceeded analysts' expectations. Following the announcement, the company's shares rose by 2% in extended trading.

Strong Financial Performance

The fast-food company reported adjusted earnings per share of $3.12, surpassing the expected $3.05. Its net revenue reached $7 billion, exceeding the forecast of $6.84 billion.

Net income for the fourth quarter was $2.16 billion, or $3.03 per share, an increase from $2.02 billion, or $2.80 per share, in the previous year's period.

Robust Same-Store Sales Growth

McDonald's reported an overall same-store sales increase of 5.7%, which was higher than the 3.9% projected by Wall Street.

Domestic Market Surges

U.S. same-store sales grew by 6.8%. This domestic growth was attributed to various promotions, including its Grinch meal and Monopoly. It also benefited from the reintroduction of Extra Value Meals, which offer a discount of approximately 15% on combo meals.

CEO Chris Kempczinski stated that listening to customers and taking action had improved traffic and strengthened the company's value and affordability scores.

International Markets Show Growth

Internationally, McDonald's experienced same-store sales growth across most markets. Its international operated markets segment, which includes countries such as Germany and Australia, saw same-store sales increase by 5.2%. The international developmental licensed markets division reported a 4.5% rise in same-store sales.