McDonald's Earnings Miss the Mark (2024)

FAQs

McDonald's Earnings Miss the Mark? ›

Revenue of $6.01 billion also missed the mark of $6.03 billion expected by Wall Street. Net income was $1.64 billion, or $2.18 a share, up from a year-earlier $1.38 billion, or $1.84 a share, but operating costs and expenses rose by 14% in the quarter.

McDonald's gross profit for the twelve months ending June 30, 2023 was $13.900B, a 6.55% increase year-over-year. McDonald's annual gross profit for 2022 was $13.207B, a 4.98% increase from 2021.

McDonald's net income/loss for the twelve months ending June 30, 2023 was $16.366B, a 2.86% decline year-over-year. McDonald's annual net income/loss for 2022 was $6.177B, a 18.13% decline from 2021.

Yes, McDonald's is facing pressures from rising costs and currency exchange swings, just like its peers. Operating income fell 10% in the full 2022 year. That figure improves to a 3% increase when you factor in those temporary exchange-rate moves.

McDonald's net income for the twelve months ending June 30, 2023 was $7.998B, a 31.52% increase year-over-year. McDonald's annual net income for 2022 was $6.177B, a 18.13% decline from 2021. McDonald's annual net income for 2021 was $7.545B, a 59.5% increase from 2020.

McDonald's revenue for the twelve months ending June 30, 2023 was $24.194B, a 2.54% increase year-over-year. McDonald's annual revenue for 2022 was $23.183B, a 0.17% decline from 2021. McDonald's annual revenue for 2021 was $23.223B, a 20.9% increase from 2020.

McDonald's average annual sales for 2021 from more than 10,000 locations in the United States was over $3 million. To franchisors, McDonald's is a highly profitable business, with a net income of over $2 billion. The average income for 2019, 2020, and 2021 was $2.480 billion.

How much does a McDonald's franchise owner make a year? The average McDonald's restaurant franchise owner in an existing restaurant makes $150,000/year. However, this figure can vary depending on several factors, such as the location of the restaurant and the owner's level of experience.

I happen to know that the most profitable McDonald's item in terms of profit percentage are soft drinks and french fries. The profit margin for a soft drink is about 90%. Meaning that if McDonald's sells you a drink for $1, McDonald's makes a profit of 90 cents.

While its restaurants serve food, the company makes most of its earnings through real estate. It creates revenue through franchise agreements and leasing its restaurants to owners at huge markups over the real estate market value for the property.

Is Mcdonalds a good long term stock? ›

The business can grow during boom times, too, as McDonald's demonstrated after pandemic restrictions eased in 2021 and 2022. Toss in the growing dividend and you have all the necessary ingredients for a great stock to hold over the long term.

The all-time high McDonald's stock closing price was 298.41 on June 30, 2023. The McDonald's 52-week high stock price is 299.35, which is 3.4% above the current share price. The McDonald's 52-week low stock price is 230.58, which is 20.4% below the current share price.

The largest shareholder of McDonald's is The Vanguard Group Inc, which has an 8.81% stake in the company valued at $16,994,291,524, at the time of writing. This article will cover McDonald's owners and its largest shareholders. We'll also look at some of the companies that McDonald's owns. The Vanguard Group, Inc.

These are the largest fast-food chains by revenue in the United States, including all system-wide sales (which includes franchise sales) as reported by QSR Magazine: McDonald's: $37 billion in system-wide U.S. sales. Starbucks: $13 billion in system-wide U.S. sales. Subway: $10.8 billion in system-wide U.S. sales.

Average Net Incomes in Absolute Terms

McDonald's did much better with an average of around $150,000 per restaurant. But when you consider that a McDonald's franchise costs more than $1 million and can easily run more than $2 million, even McDonald's doesn't generate excellent average returns on investment.

Total debt on the balance sheet as of March 2023 : $49.91 B

According to McDonald's latest financial reports the company's total debt is $49.91 B. A company's total debt is the sum of all current and non-current debts.

McDonald's is working to make 2023 its best year ever, with big plans already in progress for global expansion, refining its legacy menu, making technology and innovation a central focus across the board, and a few sweet and savory treats in between.

Outlook: For 2023, the company expects net income to be between $8.7 billion and $10.1 billion and predicts earnings per share between $6 and $7.

McDonald's stock price stood at $287.02

According to the latest long-term forecast, McDonald's price will hit $300 by the end of 2023 and then $400 by the end of 2025. McDonald's will rise to $450 within the year of 2026, $500 in 2027, $600 in 2029, $700 in 2032 and $800 in 2035.