McDONALD'S REPORTS THIRD QUARTER 2024 RESULTS
McDonald's reported Q3 2024 financial results with consolidated revenues of $6.9 billion, up 3% (2% in constant currencies). Global comparable sales decreased 1.5%, with U.S. up 0.3%, International Operated Markets down 2.1%, and International Developmental Licensed Markets down 3.5%. Diluted earnings per share was $3.13, a 1% decrease. The company declared a 6% increase in quarterly dividend to $1.77 per share. Systemwide sales to loyalty members across approximately 50 markets reached over $28 billion for the trailing twelve months and nearly $8 billion for the quarter.
McDonald's ha riportato i risultati finanziari del terzo trimestre del 2024 con ricavi consolidati di $6,9 miliardi, in aumento del 3% (2% in valute costanti). Le vendite globali comparabili sono diminuite dell'1,5%, con un aumento dello 0,3% negli Stati Uniti, una diminuzione del 2,1% nei Mercati Internazionali Operati e una diminuzione del 3,5% nei Mercati Licenziatari di Sviluppo Internazionale. Gli utili per azione diluiti sono stati di $3,13, con una diminuzione dell'1%. L'azienda ha dichiarato un aumento del 6% del dividendo trimestrale a $1,77 per azione. Le vendite sistemiche ai membri fedeli in circa 50 mercati hanno superato i $28 miliardi negli ultimi dodici mesi e quasi $8 miliardi nel trimestre.
McDonald's informó los resultados financieros del tercer trimestre de 2024 con ingresos consolidados de $6.9 mil millones, lo que representa un aumento del 3% (2% en monedas constantes). Las ventas comparables globales disminuyeron un 1.5%, con un aumento del 0.3% en EE. UU., una disminución del 2.1% en los Mercados Internacionales Operativos y una disminución del 3.5% en los Mercados Licenciados para el Desarrollo Internacional. Las ganancias diluidas por acción fueron de $3.13, una disminución del 1%. La empresa declaró un aumento del 6% en el dividendo trimestral a $1.77 por acción. Las ventas sistémicas a miembros leales en aproximadamente 50 mercados superaron los $28 mil millones en los últimos doce meses y casi $8 mil millones en el trimestre.
맥도날드는 2024년 3분기 재무 결과를 보고하였으며, consolidated revenue는 69억 달러로 3% 증가했습니다(상수 통화 기준 2%). 글로벌 비교 가능한 매출은 1.5% 감소했으며, 미국에서는 0.3% 증가했지만, 국제 운영 시장은 2.1% 감소하고, 국제 개발 라이센스 시장은 3.5% 감소했습니다. 희석 주당 순이익은 3.13달러로 1% 감소했습니다. 회사는 분기 배당금을 6% 증가시켜 주당 1.77달러를 선언했습니다. 약 50개 시장의 로열티 회원을 통한 시스템 전체 판매액은 지난 12개월 동안 280억 달러를 초과하며, 이번 분기에는 거의 80억 달러에 달했습니다.
McDonald's a annoncé les résultats financiers du troisième trimestre 2024 avec des revenus consolidés de 6,9 milliards de dollars, soit une augmentation de 3% (2% en monnaies constantes). Les ventes globales comparables ont diminué de 1,5%, avec une hausse de 0,3% aux États-Unis, une baisse de 2,1% sur les marchés opérationnels internationaux et une baisse de 3,5% sur les marchés licenciés pour le développement international. Le bénéfice dilué par action s'élevait à 3,13 dollars, une diminution de 1%. L'entreprise a déclaré une augmentation de 6% du dividende trimestriel à 1,77 dollar par action. Les ventes systémiques aux membres fidèles dans environ 50 marchés ont dépassé 28 milliards de dollars au cours des douze derniers mois et près de 8 milliards de dollars pour le trimestre.
McDonald's hat die Finanzzahlen für das 3. Quartal 2024 bekannt gegeben, mit konsolidierten Einnahmen von 6,9 Milliarden US-Dollar, was einem Anstieg von 3% (2% in konstanten Währungen) entspricht. Die globalen vergleichbaren Verkäufe sanken um 1,5%, wobei die Verkäufe in den USA um 0,3% stiegen, die International Operated Markets um 2,1% zurückgingen und die International Developmental Licensed Markets um 3,5% fielen. Der verwässerte Gewinn pro Aktie betrug 3,13 US-Dollar, ein Rückgang von 1%. Das Unternehmen erklärte eine Erhöhung der vierteljährlichen Dividende um 6% auf 1,77 US-Dollar pro Aktie. Die systemweiten Verkäufe an Treue-Mitglieder in etwa 50 Märkten erreichten in den letzten zwölf Monaten über 28 Milliarden US-Dollar und fast 8 Milliarden US-Dollar im Quartal.
- Consolidated revenues increased 3% to $6.9 billion
- U.S. comparable sales increased 0.3%
- Quarterly dividend increased 6% to $1.77 per share
- Strong loyalty program performance with $28 billion in trailing twelve-month sales
- Global comparable sales decreased 1.5%
- International Operated Markets sales decreased 2.1%
- International Developmental Licensed Markets sales decreased 3.5%
- Diluted earnings per share decreased 1% to $3.13
- Operating income decreased 1%
Insights
McDonald's Q3 2024 results reveal concerning trends with global comparable sales declining
Despite revenue growth of
Consumer behavior patterns show a concerning trend with slightly negative guest counts in the U.S., though partially offset by higher average check values. The loyalty program's performance, generating over
- Consolidated revenues for the quarter were nearly
$6.9 billion 3% (2% in constant currencies) - Systemwide sales* to loyalty members across approximately 50 loyalty markets were over
$28 billion $8 billion
"We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending," said Chairman and CEO Chris Kempczinski. "McDonald's will continue to follow our Accelerating the Arches playbook to drive long-term growth globally and win in this environment."
Third quarter financial performance:
- Global comparable sales decreased
1.5% :U.S. increased0.3% - International Operated Markets segment decreased
2.1% - International Developmental Licensed Markets segment decreased
3.5%
- Consolidated revenues increased
3% (2% in constant currencies). - Systemwide sales were flat (flat in constant currencies).
- Consolidated operating income decreased
1% (1% in constant currencies). Results included$52 million $46 million $26 million 2% (1% in constant currencies).** - Diluted earnings per share was
$3.13 1% (1% in constant currencies). Excluding the current year charges described above of$0.10 $3.23 1% (1% in constant currencies) when also excluding prior year charges.** - The Company declared a
6% increase in its quarterly cash dividend to$1.77
*Refer to page 4 for a definition of Systemwide sales. |
1
COMPARABLE SALES
Increase/(Decrease) | ||||
Quarters Ended September 30, | ||||
2024 | 2023 | |||
0.3 % | 8.1 % | |||
International Operated Markets | (2.1) | 8.3 | ||
International Developmental Licensed Markets | (3.5) | 10.5 | ||
Total | (1.5) % | 8.8 % | ||
U.S. : Comparable sales results reflect average check growth, partly offset by slightly negative comparable guest counts. Effective value and marketing campaigns featuring the core menu, successful restaurant level execution and continued digital and delivery growth contributed to slightly positive comparable sales results.- International Operated Markets: Segment performance was impacted by negative comparable sales across a number of markets, driven by
France and theU.K. - International Developmental Licensed Markets: The continued impact of the war in the
Middle East and negative comparable sales inChina more than offset positive comparable sales inLatin America .
KEY FINANCIAL METRICS - CONSOLIDATED
Dollars in millions, except per share data
Quarters Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||
2024 | 2023 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | 2024 | 2023 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||||
Revenues | $ 6,873 | $ 6,692 | 3 | % | 2 | % | $ 19,532 | $ 19,088 | 2 | % | 2 | % | |||||||
Operating income | 3,188 | 3,208 | (1) | (1) | 8,844 | 8,845 | — | — | |||||||||||
Net income | 2,255 | 2,317 | (3) | (3) | 6,207 | 6,430 | (3) | (3) | |||||||||||
Earnings per share-diluted | $ 3.13 | $ 3.17 | (1) | % | (1) | % | $ 8.59 | $ 8.76 | (2) | % | (1) | % | |||||||
Results for 2024 included the following:
- Net pre-tax charges of
$52 million $0.05 $142 million $0.15 South Korea and transaction costs associated with the acquisition of McDonald's business inIsrael - Pre-tax charges of
$46 million $0.05 $146 million $0.15
Results for 2023 included the following:
- Pre-tax charges of
$26 million $0.02 $224 million $0.23
Excluding the above items, lower Selling, general, and administrative expenses and higher Franchised margins drove positive operating income performance for the quarter. Results for the nine months reflected positive operating income performance driven primarily by higher sales-driven Franchised margins, partly offset by higher Selling, general, and administrative expenses. Results for both periods reflected higher interest expense.
2
NET INCOME AND EARNINGS PER SHARE-DILUTED RECONCILIATION
Dollars in millions, except per share data
Quarters Ended September 30, | |||||||||||||||||||
Net Income | Earnings per share - diluted | ||||||||||||||||||
2024 | 2023 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | 2024 | 2023 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||||
GAAP | $ 2,255 | $ 2,317 | (3) | % | (3) | % | $ 3.13 | $ 3.17 | (1) | % | (1) | % | |||||||
(Gains)/Charges | 67 | 20 | 0.10 | 0.02 | |||||||||||||||
Non-GAAP | $ 2,322 | $ 2,337 | (1) | % | (1) | % | $ 3.23 | $ 3.19 | 1 | % | 1 | % | |||||||
Nine Months Ended September 30, | |||||||||||||||||||
Net Income | Earnings per share - diluted | ||||||||||||||||||
2024 | 2023 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | 2024 | 2023 | Inc/ (Dec) | Inc/ (Dec) Excluding Currency Translation | ||||||||||||
GAAP | $ 6,207 | $ 6,430 | (3) | % | (3) | % | $ 8.59 | $ 8.76 | (2) | % | (1) | % | |||||||
(Gains)/Charges | 218 | 168 | 0.30 | 0.23 | |||||||||||||||
Non-GAAP | $ 6,425 | $ 6,598 | (3) | % | (2) | % | $ 8.89 | $ 8.99 | (1) | % | (1) | % | |||||||
3
THE FOLLOWING DEFINITIONS APPLY TO THESE TERMS AS USED THROUGHOUT THIS RELEASE
Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates. Management reviews and analyzes business results excluding the effect of foreign currency translation, impairment and other charges and gains, as well as material regulatory and other income tax impacts, and bases incentive compensation plans on these results because the Company believes this better represents underlying business trends.
Comparable sales and comparable guest counts are compared to the same period in the prior year and represent sales and transactions, respectively, at all restaurants, whether owned and operated by the Company or by franchisees, in operation at least thirteen months including those temporarily closed. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction, natural disasters, pandemics and acts of war, terrorism or other hostilities. Comparable sales exclude the impact of currency translation and the sales of any market considered hyperinflationary (generally identified as those markets whose cumulative inflation rate over a three-year period exceeds
Systemwide sales include sales at all restaurants, whether owned and operated by the Company or by franchisees. Systemwide sales to loyalty members is comprised of all sales to customers who self-identify as a loyalty member when transacting with both Company-owned and operated and franchised restaurants. Systemwide sales to loyalty members are measured across approximately 50 markets with loyalty programs. Systemwide sales to loyalty members represents an aggregation of the prior four quarters of sales to loyalty members active in the last 90 days. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base. The Company's revenues consist of sales by Company-owned and operated restaurants and fees from franchised restaurants operated by conventional franchisees, developmental licensees and affiliates. Changes in Systemwide sales are primarily driven by comparable sales and net restaurant unit expansion.
Free cash flow, defined as cash provided by operations less capital expenditures, and free cash flow conversion rate, defined as free cash flow divided by net income, are measures reviewed by management in order to evaluate the Company's ability to convert net profits into cash resources, after reinvesting in the core business, that can be used to pursue opportunities to enhance shareholder value.
RELATED COMMUNICATIONS
This press release should be read in conjunction with Exhibit 99.2 to the Company's Form 8-K filing for supplemental information related to the Company's results for the quarter and nine months ended September 30, 2024.
McDonald's Corporation will broadcast its investor earnings conference call live over the Internet at 7:30 a.m. (Central Time) on October 29, 2024. A link to the live webcast will be available at www.investor.mcdonalds.com. There will also be an archived webcast available for a limited time thereafter.
UPCOMING COMMUNICATIONS
For important news and information regarding McDonald's, including the timing of future investor conferences and earnings calls, visit the Investor Relations section of the Company's Internet home page at www.investor.mcdonalds.com. McDonald's uses this website as a primary channel for disclosing key information to its investors, some of which may contain material and previously non-public information.
ABOUT McDONALD'S
McDonald's is the world's leading global foodservice retailer with over 40,000 locations in over 100 countries. Approximately
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from expectations are detailed in the Company's filings with the Securities and Exchange Commission, including the risk factors discussed in Exhibit 99.2 to the Company's Form 8-K filing on October 29, 2024. The Company undertakes no obligation to update such forward-looking statements, except as may otherwise be required by law.
4
McDONALD'S CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
| |||||||
Dollars and shares in millions, except per share data | |||||||
Quarters Ended September 30, | 2024 | 2023 | Inc/ (Dec) | ||||
Revenues | |||||||
Sales by Company-owned and operated restaurants | $ 2,656 | $ 2,556 | $ 100 | 4 % | |||
Revenues from franchised restaurants | 4,094 | 4,047 | 47 | 1 | |||
Other revenues | 124 | 89 | 35 | 39 | |||
TOTAL REVENUES | 6,873 | 6,692 | 181 | 3 | |||
Operating costs and expenses | |||||||
Company-owned and operated restaurant expenses | 2,248 | 2,135 | 113 | 5 | |||
Franchised restaurants-occupancy expenses | 646 | 625 | 21 | 3 | |||
Other restaurant expenses | 104 | 68 | 36 | 53 | |||
Selling, general & administrative expenses | |||||||
Depreciation and amortization | 111 | 97 | 15 | 15 | |||
Other | 536 | 584 | (48) | (8) | |||
Other operating (income) expense, net | 39 | (25) | 64 | n/m | |||
Total operating costs and expenses | 3,685 | 3,484 | 201 | 6 | |||
OPERATING INCOME | 3,188 | 3,208 | (20) | (1) | |||
Interest expense | 381 | 341 | 40 | 12 | |||
Nonoperating (income) expense, net | (36) | (56) | 20 | (36) | |||
Income before provision for income taxes | 2,843 | 2,924 | (80) | (3) | |||
Provision for income taxes | 588 | 606 | (19) | (3) | |||
NET INCOME | $ 2,255 | $ 2,317 | $ (62) | (3) % | |||
EARNINGS PER SHARE-DILUTED | $ 3.13 | $ 3.17 | $ (0.04) | (1) % | |||
Weighted average shares outstanding-diluted | 720.0 | 731.6 | (11.6) | (2) % | |||
n/m Not meaningful | |||||||
5
McDONALD'S CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) | |||||||
Dollars and shares in millions, except per share data | |||||||
Nine Months Ended September 30, | 2024 | 2023 | Inc/ (Dec) | ||||
Revenues | |||||||
Sales by Company-owned and operated restaurants | $ 7,472 | $ 7,267 | $ 204 | 3 % | |||
Revenues from franchised restaurants | 11,756 | 11,568 | 189 | 2 | |||
Other revenues | 304 | 252 | 52 | 21 | |||
TOTAL REVENUES | 19,532 | 19,088 | 444 | 2 | |||
Operating costs and expenses | |||||||
Company-owned and operated restaurant expenses | 6,358 | 6,149 | 208 | 3 | |||
Franchised restaurants-occupancy expenses | 1,902 | 1,842 | 60 | 3 | |||
Other restaurant expenses | 241 | 188 | 53 | 28 | |||
Selling, general & administrative expenses | |||||||
Depreciation and amortization | 311 | 291 | 20 | 7 | |||
Other | 1,748 | 1,704 | 44 | 3 | |||
Other operating (income) expense, net | 129 | 68 | 61 | 90 | |||
Total operating costs and expenses | 10,688 | 10,243 | 445 | 4 | |||
OPERATING INCOME | 8,844 | 8,845 | (1) | — | |||
Interest expense | 1,126 | 1,001 | 126 | 13 | |||
Nonoperating (income) expense, net | (90) | (163) | 73 | (45) | |||
Income before provision for income taxes | 7,807 | 8,007 | (200) | (2) | |||
Provision for income taxes | 1,600 | 1,577 | 23 | 1 | |||
NET INCOME | $ 6,207 | $ 6,430 | $ (223) | (3) % | |||
EARNINGS PER SHARE-DILUTED | $ 8.59 | $ 8.76 | $ (0.17) | (2) % | |||
Weighted average shares outstanding-diluted | 722.7 | 733.8 | (11.1) | (2) % | |||
n/m Not meaningful | |||||||
6
View original content:https://www.prnewswire.com/news-releases/mcdonalds-reports-third-quarter-2024-results-302289216.html
SOURCE McDonald's Corporation
FAQ
What was McDonald's (MCD) revenue in Q3 2024?
How much did McDonald's (MCD) global comparable sales change in Q3 2024?
What was McDonald's (MCD) earnings per share in Q3 2024?
How much did McDonald's (MCD) increase its quarterly dividend in Q3 2024?
