McDonalds (NYSE:MCD) reported quarterly earnings this morning and the pre-trading markets are telling the story. It’s hard to balk at revenue of $6.9 billion dollars but MCD sales stood flat from a year before once inflation, a weak quarter for the US dollar, and the global economic slowdown each in turn took a bite out of McDonald’s happy meal. Analyst consensus earnings per share was $1.38 and though global sales increased 3.7% in the quarter McDonald’s net income missed the analyst target by 2.17% and came in at $1.35.
McDonalds is the world’s largest chain of hamburger and fast food restaurants with over 68 million customers served daily across the globe. MCD is a member of the dividend aristocrats and has raised its dividend consecutively for over 25 years, at an impressive rate of 17% or more since 1990. McDonalds is served in 119 countries serving our at home favorites like the quarter pounder – which I enjoyed on my last trip to Argentina – and Big Mac as well as a variety of interesting choices the world over including: Thai spicy fish McDippers and samurai pork burgers in Thailand, seaweed flavored fries in Japan, and baked tuna pie in the Philippines.
In pre-market trading this morning MCD is down 2.82% at $89.00, erasing its gains since the start of July.
Foodbeat’s take: Europe and North America both continue to show steady sales growth in the high 3% range for McDonald’s, so if the global economic environment starts to show an upswing they are well poised to take advantage of it. Also, around the end of August McDonalds will make their 4th consecutive dividend payment of $0.70 signaling that its last payment of the year will likely be at an increased rate.
Source(s): Wall Street Journal, Reuters, RTT News
Disclosure: I currently hold a long position in MCD