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McDonald's (MCD) Stock Up on Q1 Earnings and Revenues Beat
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McDonald's Corporation (MCD - Free Report) reported first-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Both the metrics beat the estimates after missing the same in the preceding quarter. Moreover, both top and bottom lines improved year over year. Following the results, the company’s shares are up 2.4% in the pre-market trading session.
McDonald's robust drive-thru presence and investments in delivery and digitization in the past few years have driven the company amid the pandemic. Robust digitalization will continue to help it in driving long-term growth and capturing market share.
McDonald's president and CEO, Chris Kempczinski, said, “In most of our major markets, we sustained QSR traffic share gains by focusing on elevating our brand, accelerating digital channels and showcasing our core equities of chicken and beef.”
The company reported adjusted earnings of $2.28 per share, which topped the Zacks Consensus Estimate of $2.18. The bottom line improved 19% year over year.
McDonald's Corporation Price, Consensus and EPS Surprise
For the first quarter, revenues amounted to $ 5,665.6 million, which beat the Zacks Consensus Estimate of $5,554 million. The figure improved 11% year over year. The top line benefited from an increase in global comparable sales.
At company-operated restaurants, sales were $2,302.4 million, up 7% year over year. The same at franchise-operated restaurants were $3,262.8 million, up 13% year over year.
For the quarter under discussion, global comps advanced 11.8% compared with a gain of 7.5% in the prior-year quarter. This marks the fifth consecutive quarter of comps growth.
Solid Comps Across Segments
U.S.: Comps at this segment rose 3.5% for the first quarter compared with a gain of 13.6% in the prior-year period. The company’s comps for the quarter benefited from menu price increase, robust digitalization and the company's loyalty program — MyMcDonald's Rewards.
International Operated Markets: Comps at this segment surged 20.4% year over year compared with a gain of 0.6% in the year-ago quarter. Comps benefited from robust operating performance and reduced COVID-related government restrictions. The company witnessed strong comparable sales in France and the U.K.
International Developmental Licensed Segment: The segment’s comparable sales increased 14.7% for the first quarter. In the prior-year quarter, the segment’s comps increased 7.5%. The company gained from robust performance in Japan and Brazil.
Zacks Rank & Key Picks
McDonald's carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space are BBQ Holdings, Inc. , Dave & Buster's Entertainment, Inc. (PLAY - Free Report) and Arcos Dorados Holdings Inc. (ARCO - Free Report) .
BBQ Holdings sports a Zacks Rank #1 (Strong Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have increased 7.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 40.9% and 66.2%, respectively, from the year-ago period’s levels.
Dave & Buster's flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 212%, on average. Shares of the company have increased 1.7% in the past year.
The Zacks Consensus Estimate for Dave & Buster's current-year sales and EPS suggests growth of 24.4% and 49.3%, respectively, from the year-ago period’s levels.
Arcos Dorados sports a Zacks Rank #1. Arcos Dorados has a long-term earnings growth of 31.3%. Shares of the company have risen 48.9% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 66.7%, respectively, from the year-ago period’s levels.
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McDonald's (MCD) Stock Up on Q1 Earnings and Revenues Beat
McDonald's Corporation (MCD - Free Report) reported first-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Both the metrics beat the estimates after missing the same in the preceding quarter. Moreover, both top and bottom lines improved year over year. Following the results, the company’s shares are up 2.4% in the pre-market trading session.
McDonald's robust drive-thru presence and investments in delivery and digitization in the past few years have driven the company amid the pandemic. Robust digitalization will continue to help it in driving long-term growth and capturing market share.
McDonald's president and CEO, Chris Kempczinski, said, “In most of our major markets, we sustained QSR traffic share gains by focusing on elevating our brand, accelerating digital channels and showcasing our core equities of chicken and beef.”
The company reported adjusted earnings of $2.28 per share, which topped the Zacks Consensus Estimate of $2.18. The bottom line improved 19% year over year.
McDonald's Corporation Price, Consensus and EPS Surprise
McDonald's Corporation price-consensus-eps-surprise-chart | McDonald's Corporation Quote
Revenues & Comps Discussion
For the first quarter, revenues amounted to $ 5,665.6 million, which beat the Zacks Consensus Estimate of $5,554 million. The figure improved 11% year over year. The top line benefited from an increase in global comparable sales.
At company-operated restaurants, sales were $2,302.4 million, up 7% year over year. The same at franchise-operated restaurants were $3,262.8 million, up 13% year over year.
For the quarter under discussion, global comps advanced 11.8% compared with a gain of 7.5% in the prior-year quarter. This marks the fifth consecutive quarter of comps growth.
Solid Comps Across Segments
U.S.: Comps at this segment rose 3.5% for the first quarter compared with a gain of 13.6% in the prior-year period. The company’s comps for the quarter benefited from menu price increase, robust digitalization and the company's loyalty program — MyMcDonald's Rewards.
International Operated Markets: Comps at this segment surged 20.4% year over year compared with a gain of 0.6% in the year-ago quarter. Comps benefited from robust operating performance and reduced COVID-related government restrictions. The company witnessed strong comparable sales in France and the U.K.
International Developmental Licensed Segment: The segment’s comparable sales increased 14.7% for the first quarter. In the prior-year quarter, the segment’s comps increased 7.5%. The company gained from robust performance in Japan and Brazil.
Zacks Rank & Key Picks
McDonald's carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the same space are BBQ Holdings, Inc. , Dave & Buster's Entertainment, Inc. (PLAY - Free Report) and Arcos Dorados Holdings Inc. (ARCO - Free Report) .
BBQ Holdings sports a Zacks Rank #1 (Strong Buy). BBQ Holdings has a long-term earnings growth of 14%. Shares of the company have increased 7.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BBQ Holdings’ 2022 sales and EPS suggests growth of 40.9% and 66.2%, respectively, from the year-ago period’s levels.
Dave & Buster's flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 212%, on average. Shares of the company have increased 1.7% in the past year.
The Zacks Consensus Estimate for Dave & Buster's current-year sales and EPS suggests growth of 24.4% and 49.3%, respectively, from the year-ago period’s levels.
Arcos Dorados sports a Zacks Rank #1. Arcos Dorados has a long-term earnings growth of 31.3%. Shares of the company have risen 48.9% in the past year.
The Zacks Consensus Estimate for Arcos Dorados’ 2022 sales and EPS suggests growth of 16.6% and 66.7%, respectively, from the year-ago period’s levels.