Tuesday July 28, 2020, 00:00:00
By Mark Kalinowski
Earlier today, McDonald’s (MCD; Buy, $199.26) reported Q2 EPS of $0.65, short of our $0.85 forecast and sell-side consensus (according to Consensus Metrix) of $0.73. There was a $31 million one-time payment to distribution centers for obsolete inventory, and an increase in bad debt reserve (related to rents and royalty deferrals) of $45 million. By our math, these items combined represent about 8 cents on an EPS basis. For more info see today’s 8-K at:
http://d18rn0p25nwr6d.cloudfront.net/CIK-0000063908/ fea3a523-303b-43df-830a-5228f5ee4148.pdf
Read more
Thursday April 30, 2020, 00:00:00
By Mark Kalinowski
Earlier today, McDonald’s (MCD; Neutral, $183.93) reported Q1 EPS of $1.47, short of our $1.52 forecast and sell-side consensus (according to Consensus Metrix) of $1.55. SG&A/Revenues of 12.5% (versus our 11.7% projection) accounts for the difference between Q1 EPS and our EPS estimate. However, part of this SG&A relates to non-recurring costs, such as $40 million for the company’s cancelation of its biannual worldwide convention, and $20 million for “payments of contractual obligations as [McDonald’s] reduced the scope and ongoing spend in R&D work of certain restaurant technology.”
Read more
Wednesday January 29, 2020, 00:00:00
By Mark Kalinowski
Earlier today, McDonald’s (MCD; Buy) reported Q4 EPS (excluding an $0.11 worth of income tax benefits due to new regulations) of $1.97, below our $2.00 forecast, but one cent above sell-side consensus (according to Consensus Metrix) of $1.96. Closely-watched U.S. same-store sales rose by +5.1% in Q4, nearly matching our +5.0% projection, and coming in 40 basis points above consensus of +4.7%. Fourthquarter same-store sales for International Operated (+6.2% actual vs. our +5.5% estimate and +5.3% consensus) and International Licensed (+6.6% actual vs. our +6.0% estimate and +6.4% consensus) also came in above expectations.
Read more
