McDonald’s delivered its strongest quarter of the year, recovering nearly 99% of fourth quarter 2019 global comparable sales
U.S. comparable sales were 5.5% in the fourth quarter and 0.4% for the year, marking 6 consecutive years of positive comparable sales
CHICAGO, IL (StLouisRestaurantReview) McDonald’s Corporation today announced results for the fourth quarter and year ended December 31, 2020.
“2020 will be remembered as one of McDonald’s most challenging, yet inspiring, moments in our long history. The resilience of the McDonald’s System was on display – making safety and service a priority, putting our customers and people first, and running great restaurants,” said McDonald’s President and Chief Executive Officer Chris Kempczinski. “Against an uncertain backdrop, we are committed to staying true to our values and our brand purpose to feed and foster communities. By investing for the future and leveraging competitive strengths within our Accelerating the Arches strategy in drive-thru, delivery, and our growing digital presence, we’re confident we can continue to capture market share and drive long-term sustainable growth for all stakeholders.”
McDonald’s Fourth quarter financial performance:
- Global comparable sales declined 1.3% while improving from the prior quarter, reflecting positive comparable sales in the U.S. of 5.5%, and negative comparable sales in the International Operated segment and International Developmental Licensed segment of 7.4% and 3.6%, respectively.
- Consolidated revenues decreased 2% (3% in constant currencies).
- System-wide sales increased 1% (flat in constant currencies).
- Consolidated operating income decreased 7% (9% in constant currencies) and included $142 million of strategic gains primarily related to the sale of McDonald’s Japan stock. Excluding these gains, operating income decreased 13% (15% in constant currencies).
- Diluted earnings per share of $1.84 decreased 12% (13% in constant currencies). Excluding $0.14 per share of current year strategic gains primarily related to the sale of McDonald’s Japan stock, diluted earnings per share was $1.70 for the quarter, a decrease of 14% (15% in constant currencies) when also excluding $0.11 per share of prior year income tax benefit due to regulations issued in the fourth quarter of 2019.
McDonald’s Full year financial performance:
- Global comparable sales declined 7.7%, reflecting positive comparable sales in the U.S. of 0.4%, and negative comparable sales in the International Operated segment and International Developmental Licensed segment of 15.0% and 10.5%, respectively.
- Consolidated revenues decreased 10% (10% in constant currencies).
- System-wide sales decreased 7% (7% in constant currencies).
- Consolidated operating income decreased 19% (20% in constant currencies) and included $268 million of net strategic gains. Excluding these items, operating income decreased 23% (23% in constant currencies), when also excluding $74 million of net strategic charges from the prior year.
- Diluted earnings per share of $6.31 decreased 20% (20% in constant currencies).
NOTE: this is NOT the complete release.
