Summary
McDonald's Corporation reported its third-quarter and nine-month results for 2019, demonstrating resilience and continued strategic execution. Total revenues saw a slight increase of 1% ($5,430.6 million) for the quarter and a 1% decrease ($15,727.5 million) for the nine months, with constant currency figures showing stronger growth of 3% in both periods. This performance was largely driven by robust comparable sales growth across all segments, with the U.S. up 4.8% and International Developmental Licensed Markets leading at 8.1% for the quarter. The company continues to prioritize its 'Velocity Growth Plan,' focusing on enhancing customer experience through 'Experience of the Future' (EOTF) modernizations, digital initiatives including AI-driven personalization, and expanding delivery services. These strategic investments are aimed at driving sustainable comparable sales and guest count growth, ultimately benefiting shareholder value. While net income saw a slight dip of 2% to $1,607.9 million for the quarter, diluted earnings per share remained stable at $2.11, reflecting the positive impact of share repurchases and effective management of costs.
Financial Highlights
50 data points| Revenue | $5.50B |
| Cost of Revenue | $559.50M |
| Gross Profit | $4.94B |
| SG&A Expenses | $543.60M |
| Operating Expenses | $3.09B |
| Operating Income | $2.41B |
| Interest Expense | $280.60M |
| Net Income | $1.61B |
| EPS (Basic) | $2.13 |
| EPS (Diluted) | $2.11 |
| Shares Outstanding (Basic) | 756.60M |
| Shares Outstanding (Diluted) | 763.90M |
Key Highlights
- 1Global comparable sales increased by 5.9% for both the third quarter and the first nine months of 2019.
- 2The company repurchased $1.5 billion of stock in the quarter, contributing to a total of $3.6 billion in share repurchases for the nine months.
- 3Consolidated revenues saw a 1% increase to $5,430.6 million for the quarter, driven by strong franchised restaurant revenues.
- 4Operating income remained stable year-over-year for the quarter at $2,409.3 million, with a 2% increase in constant currency.
- 5Diluted earnings per share (EPS) for the quarter were $2.11, flat compared to the prior year, but increased by 2% in constant currency.
- 6The company continued to invest in its 'Velocity Growth Plan,' with over 9,000 U.S. restaurants now modernized through the 'Experience of the Future' initiative.
- 7Dividends declared per common share increased by 11% to $2.41 for the quarter compared to the prior year's $2.17, with a declared fourth-quarter dividend of $1.25 per share.