Close Navigation
Learn more about IBKR accounts

McDonald’s Price Hike Serves Up Tasty Margins in Q3 Earnings Feast!

Posted October 30, 2023
Shivani Kumaresan
Benzinga

McDonald’s Corp reported third-quarter FY23 sales growth of 14% year-on-year to $6.692 billion, beating the analyst consensus estimate of $6.577 billion.

Global comparable sales rose 8.8%, reflecting strong growth across each segment. 

U.S. Comparable sales rose 8.1%, benefiting from strong average check growth driven by strategic menu price increases.

Sales by company-operated restaurants increased 20.3% Y/Y to $2.56 billion, while sales from franchised restaurants rose 10.2% to $4.05 billion.

Digital Systemwide sales in the top six markets were nearly $9 billion for the quarter, representing almost 40% of their Systemwide sales.

Total operating costs and expenses increased 12.1% to $3.48 billion. Operating income for the quarter rose 16% to $3.208 billion, with an operating margin of 47.9%, up from 47.06% year-over-year.

Adjusted EPS of $3.19 beat the consensus estimate of $3.00.

On October 4, the company said the Board of Directors increased the quarterly cash dividend by 10% to $1.67 per share, payable on December 15, 2023 to shareholders of record at the close of business on December 1, 2023. 

“With global Systemwide sales growth of 11%, our third quarter results reflect our position of strength as the industry leader,” said President and CEO Chris Kempczinski.

Outlook:

MCD sees FY23 operating margin of 46%; Capital expenditure of $2.2 billion – $2.4 billion.

Globally, the company expects to open about 1,900 restaurants in FY23.

Price Action:

MCD shares are trading higher by 3.10% at $263.88 in premarket on the last check Thursday.

McDonald’s Price Hike Serves Up Tasty Margins in Q3 Earnings Feast!

Join The Conversation

If you have a general question, it may already be covered in our FAQs. If you have an account-specific question or concern, please reach out to Client Services.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclosure: Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with its permission. The views expressed in this material are solely those of the author and/or Benzinga and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.