MCD An Update on the Foundational Business re Q4 2018, and Some Tidbits

Following our checks for McDonald’s (MCD; Buy) Foundational business segment for Q4E, we retain our +6.0% same-store sales projection, modestly above sellside consensus. Although McDonald’s Japan — the largest part of the Foundational segment — likely had its worst month of 2018 in terms of same-store sales in October 2018, we believe a robust December 2018 helped McDonald’s Japan post a midsingle digit comp for Q4 2018 that was very similar to its Q3 2018 comp (a touch better in Q4 than in Q3). While October’s same-store sales for McDonald’s Japan were likely up in low-single-digit territory, November was better (mid-single digits), and December appears to have reached high-single digits.

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