Due to poor stock performance, weak sales, and the ongoing impact of the previous &#34;E. coli outbreak&#34; incident, McDonald's reported a decline in both revenue and profit for the fourth quarter, with same-store sales in the U.S. experiencing the largest drop in nearly five years.
On Monday, February 10, McDonald's disclosed its fourth-quarter financial report for 2024, showing that:
1) Key Financial Data:
<blockquote>
Revenue was $6.39 billion, a year-on-year decrease of 0.3%, below the expected $6.45 billion.
Earnings per share were $2.80, unchanged from the same period last year; adjusted earnings per share were $2.83, down from $2.95 a year earlier and below the expected $2.84.
Net profit was $2.02 billion, a year-on-year decrease of 1%.
Operating profit was $2.87 billion, a year-on-year increase of 2%.
</blockquote>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/152b219a-60f5-4b5d-b0c8-2fd67d6f8f00.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/152b219a-60f5-4b5d-b0c8-2fd67d6f8f00.png"/>
McDonald's plans to attract customers again in 2025 through its McValue menu platform and new products such as chicken strips, chicken nuggets, and wraps.
In pre-market trading, McDonald's shares rose 1.58%.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/b7264738-d4be-4397-a5db-75a01c2e7e24.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/b7264738-d4be-4397-a5db-75a01c2e7e24.png"/>
<h2>Same-store sales growth in the fourth quarter was only slight, with a significant decline in growth rate</h2>
Data shows that McDonald's same-store sales in the fourth quarter increased by 0.4% year-on-year, down from 3.4% growth in the same period last year, but higher than the expected -0.93%. Among them, same-store sales in the U.S. experienced the largest decline in nearly five years, as consumers remain wary due to the previous &#34;E. coli outbreak incident.&#34;
Specifically:
<blockquote>
U.S.: Same-store sales decreased by 1.4%, down from a 4.3% increase in the same period last year, exceeding the expected decline of 0.41%. This quarter saw a slight increase in customer traffic compared to last year, but this growth was offset by a decrease in the average spending amount per customer visit.
International Operating Markets: Same-store sales increased by 0.1%, with most markets showing positive same-store sales, offsetting weak sales in the UK market.
International Development License Markets: Same-store sales increased by 4.1%, exceeding the expected decline of 0.43%, with the Middle East and Japan markets being the main drivers of this growth.
</blockquote>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/66afa258-74bc-456e-9b29-d0778355943d.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/66afa258-74bc-456e-9b29-d0778355943d.png"/>
BTIG analyst Peter Saleh warned that the company is overly reliant on discounts, which currently account for more than one-third of sales, potentially putting pressure on franchise profit margins.
Wedbush analyst Nick Setyan believes that even if McDonald's performs poorly in the first half of the year, a positive and sustained recovery story will emerge in the second half

Data shows that McDonald's fourth-quarter revenue was $6.39 billion, a year-on-year decrease of 0.3%, lower than the expected $6.45 billion. Same-store sales increased by 0.4% year-on-year, lower than the 3.4% increase in the same period last year, but higher than the expected -0.93%

- McDonald's reported a decline in both revenue and profit for Q4 2024, with U.S. same-store sales experiencing the largest drop in nearly five years due to poor stock performance and lingering effects from a previous E. coli outbreak.  
- Revenue was $6.39 billion, slightly below expectations, while net profit fell 1% to $2.02 billion, and same-store sales in the U.S. dropped 1.4%.  
- The company plans to attract customers in 2025 with new products and its McValue menu, despite analysts warning about over-reliance on discounts affecting franchise profitability.

McDonald's Q4 revenue and profit both decline, U.S. same-store sales hit the largest drop in nearly five years | Financial Report Insights