McDonald's Shares Fall due to Underperforming Revenue and Comparable Store Sales
McDonald's took a dip on Thursday as their Q1 2023 performance fell short of analysts' expectations, sending shares tumbling. The Chicago-based fast-food titan reported earnings of $2.67 per share, a MAP-dropping 3% year-over-year, with revenue stagnating at $5.96 billion. Analysts, however, had expected $6.12 billion, setting the stage for some bad financial burger-flipping.
The global comparable sales stats were equally disillusioning. McDonald's reported a 1% decrease, which was significantly lower than the forecasted gain of 0.31%. But let's not kid ourselves—excluding the pesky leap day from last year's figures, the "comparables" were basically holding steady. So, there's that.
The U.S. market, however, felt the brunt of the disappointments, accounting for a colossal 3.6% decline. That's worse than the 1.37% decline Wall Street anticipated. And, you guessed it—the culprit was fewer customer visits.
Cash-strapped McDonald's investors bemoaned the negative comparable guest counts (fewer customers), making for a less-than-impressive earnings performance. The adjusted EPS may have inched past some forecasts ($2.67 versus $2.68 Bloomberg) and dropped year-over-year from $2.70, but it barely warranted a cheer.
So, there you have it, fellow investors. McDonald's got served a chunky monkey portion of disappointment with their stale earnings. If you're looking for a more appetizing investment, head on over to our site for some mouthwatering CFD opportunities with Pepperstone. Let the good times roll!
- The declining earnings and revenue of McDonald's, as indicated by the 3% drop in earnings per share and stagnant revenue, have led to concerns among investors.
- Analysts had forecasted a gain of 0.31% for McDonald's global comparable sales, but the actual figure showed a 1% decrease, which could be a red flag for investors.
- The U.S. market, specifically, felt the brunt of the disappointing performance, with a colossal 3.6% decline, significantly worse than the 1.37% decline Wall Street anticipated.
- The decrease in customers visiting McDonald's locations, or the negative comparable guest counts, has been a cause for concern among cash-strapped investors, as it may have contributed to the less-than-impressive earnings performance.
- To find more promising investment opportunities, investors may want to explore CFDs with Pepperstone, as McDonald's disappointing earnings may indicate a less appetizing investment landscape.
