McDonald's Bottomline Faces The Heat Of Consumer Spending Cut In Q1, Shares Slide
Portfolio Pulse from Shivani Kumaresan
McDonald's Corp (NYSE:MCD) reported a Q1 FY24 sales growth of 4.6% to $6.17 billion, slightly above analyst expectations but saw its shares slide due to an adjusted EPS of $2.70 missing estimates by $0.02. Global comparable sales increased by 1.9%, with U.S. sales up 2.5%. Operating income rose 8% to $2.7 billion. The company anticipates a mid-to-high 40% operating margin for FY24 and plans to open about 2,100 restaurants globally.
April 30, 2024 | 1:32 pm
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McDonald's reported higher than expected Q1 FY24 sales but missed EPS estimates, leading to a premarket share price decline of 3.65%.
The share price decline is directly attributed to the EPS miss, despite sales growth. The EPS is a critical measure of profitability that investors closely monitor. The announcement of future expansion plans and a positive outlook on operating margin may mitigate long-term impacts but has not prevented the short-term negative reaction.
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