MCD (Post-Call) Some Challenges, and Some Bright Spots

By Mark Kalinowski Published on July 28, 2020 at 12:00 AM

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: fea3a523-303b-43df-830a-5228f5ee4148.pdf

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