Justin Sullivan McDonald’s Corporation (NYSE:MCD) edged slightly higher in early trading on Tuesday after posting its Q4 earnings report. Global comparable sales were up 12.6% for the restaurant giant vs. +8.0% consensus. The gain came against a strong comparable from a year ago of +12.3%. Notably, all segments showed positive growth during the quarter. U.S. comparable sales were up 10.3% vs. +7.8% consensus. The results benefited from strategic menu price increases and positive guest counts. Successful menu and marketing campaigns, such as the Cactus Plant Flea Market promotion and McRib, and continued digital and delivery growth contributed to strong comparable sales results. The International Operated Markets segment reported a 12.6% increase during the quarter. McDonald’s (MCD) pointed to strong operating performance drove positive comparable sales across the segment, led by strong comparable sales in Germany, the U.K. and France. The International Developmental Licensed Markets segment saw a 16.5% comparable sales increase. The quarter reflected strong comparable sales across the segment, led by Japan and Brazil, partly offset by negative comparable sales in China due to continued COVID-19 related government restrictions. Consolidated operating income increased 8% during the quarter and was 16% higher on a constant currency basis. Looking ahead, McDonald’s (MCD) expects to add a net 1.5K restaurants in 2023. CEO update: “While we expect short-term inflationary pressures to continue in 2023, we remain highly confident in Accelerating the Arches, which now includes a greater emphasis on new restaurant openings. The recently announced Accelerating the Organization initiative will complement this strategy to enable the McDonald’s System to be faster, more innovative, and more efficient.” Shares of MCD rose 0.05% in premarket action to $270.81 vs. the 52-week trading range of $217.68 to $281.67.
