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McDonald's (MCD) Reports Q1 Earnings: What Key Metrics Have to Say
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McDonald's (MCD - Free Report) reported $5.9 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 4.1%. EPS of $2.63 for the same period compares to $2.28 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.58 billion, representing a surprise of +5.77%. The company delivered an EPS surprise of +13.85%, with the consensus EPS estimate being $2.31.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how McDonald's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable sales growth - International Operated Markets - YoY change: 12.6% versus the nine-analyst average estimate of 6.96%.
Comparable sales growth - International Developmental Licensed Markets & Corporate - YoY change: 12.6% versus 9% estimated by nine analysts on average.
Comparable sales growth - US - YoY change: 12.6% versus 6.74% estimated by nine analysts on average.
Systemwide restaurants - Total: 40535 compared to the 40607 average estimate based on eight analysts.
Revenues- Total Franchised revenues: $3.59 billion compared to the $3.38 billion average estimate based on 10 analysts. The reported number represents a change of +10% year over year.
Revenues- Total Company-operated sales: $2.22 billion versus $2.10 billion estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a -3.4% change.
Revenues- Total Other revenues: $86 million versus the eight-analyst average estimate of $87.82 million. The reported number represents a year-over-year change of -14.3%.
Revenues- Franchised revenues- International Developmental Licensed Markets & Corporate: $422.80 million compared to the $395.32 million average estimate based on four analysts. The reported number represents a change of +15.5% year over year.
Revenues- Company-operated sales- US: $761.30 million versus $701.12 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +19.1% change.
Revenues- Company-operated sales- International Developmental Licensed Markets & Corporate: $192.60 million compared to the $190.63 million average estimate based on four analysts. The reported number represents a change of +5.4% year over year.
Revenues- Company-operated sales- International Operated Markets: $1.27 billion versus $1.23 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -14.2% change.
Revenues- Franchised revenues- US: $1.68 billion versus $1.57 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.4% change.
Shares of McDonald's have returned +7.1% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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McDonald's (MCD) Reports Q1 Earnings: What Key Metrics Have to Say
McDonald's (MCD - Free Report) reported $5.9 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 4.1%. EPS of $2.63 for the same period compares to $2.28 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.58 billion, representing a surprise of +5.77%. The company delivered an EPS surprise of +13.85%, with the consensus EPS estimate being $2.31.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how McDonald's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Comparable sales growth - International Operated Markets - YoY change: 12.6% versus the nine-analyst average estimate of 6.96%.
- Comparable sales growth - International Developmental Licensed Markets & Corporate - YoY change: 12.6% versus 9% estimated by nine analysts on average.
- Comparable sales growth - US - YoY change: 12.6% versus 6.74% estimated by nine analysts on average.
- Systemwide restaurants - Total: 40535 compared to the 40607 average estimate based on eight analysts.
- Revenues- Total Franchised revenues: $3.59 billion compared to the $3.38 billion average estimate based on 10 analysts. The reported number represents a change of +10% year over year.
- Revenues- Total Company-operated sales: $2.22 billion versus $2.10 billion estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a -3.4% change.
- Revenues- Total Other revenues: $86 million versus the eight-analyst average estimate of $87.82 million. The reported number represents a year-over-year change of -14.3%.
- Revenues- Franchised revenues- International Developmental Licensed Markets & Corporate: $422.80 million compared to the $395.32 million average estimate based on four analysts. The reported number represents a change of +15.5% year over year.
- Revenues- Company-operated sales- US: $761.30 million versus $701.12 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +19.1% change.
- Revenues- Company-operated sales- International Developmental Licensed Markets & Corporate: $192.60 million compared to the $190.63 million average estimate based on four analysts. The reported number represents a change of +5.4% year over year.
- Revenues- Company-operated sales- International Operated Markets: $1.27 billion versus $1.23 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -14.2% change.
- Revenues- Franchised revenues- US: $1.68 billion versus $1.57 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.4% change.
View all Key Company Metrics for McDonald's here>>>Shares of McDonald's have returned +7.1% over the past month versus the Zacks S&P 500 composite's +4.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.