By Ryan D. Lavender
Published on January 26, 2021 at 3:15 PM
Today we publish part 2 of 2 of the January 2021 edition of our proprietary McDonald’s Franchisee Survey. Much of this report focuses on relations between U.S. franchisees and corporate. As we noted in the part 1 report published late last week, we asked our franchisee respondents to quantify the current relationship between franchisees and McDonald’s Corporation, using a scale of one to five, with 1=Poor and 5=Excellent. The average response we received was 1.41 — the lowest average response we have received for this question since Q4 2018’s 1.39.
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By Mark Kalinowski
Published on April 30, 2020 at 12:00 AM
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.”
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By Mark Kalinowski
Published on October 23, 2018 at 12:00 AM
Earlier today, McDonald’s (MCD; Buy) reported Q3 EPS of $2.10, exceeding our $2.01 forecast and sell-side consensus of $1.99 (as measured by Consensus Metrix). Factors helping Q3 EPS included better-than-expected same-store sales in all four regions (U.S., International Lead Markets, High Growth Markets, and Foundational), better-than-expected SG&A/Revenues (9.6% actual vs. 10.3% projected), and a more favorable-than-projected tax rate (help of about $0.05). Given the Q3 outperformance of $0.09, our full-year 2018E EPS estimate goes up by $0.09, to $7.78.
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