MCD (Post-Call) Robust Q4 Results, But SG&A Will Weigh on 2020

By Mark Kalinowski Published on January 29, 2020 at 12:00 AM

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.

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