McDonald’s reported mixed third-quarter results on Tuesday morning. The fast-food giant beat earnings per share and revenue expectations but missed on global same-store sales. Adjusted earnings per share came in at $3.23, slightly higher than the $3.20 expected by analysts surveyed by LSEG.
NASDAQ closed at an all-time high today, taking out its previous July 10 record high of 18647 pic.twitter.com/VfUQJ5Q0Kt
— Liz Ann Sonders (@LizAnnSonders) October 29, 2024
Net sales rose 3% to $6.87 billion, surpassing the consensus estimate of $6.82 billion. However, the strong financial results come amidst scrutiny after a recent E. coli outbreak was linked to McDonald’s Quarter Pounder burgers.
YTD leaders Info Tech and Comm Serv came out on top today while Utilities and Energy were at the bottom of the leaderboard…large caps outperformed and remain ahead of small caps both YTD and MTD pic.twitter.com/qJT7QcKDnQ
— Liz Ann Sonders (@LizAnnSonders) October 29, 2024
With so much on tap for the global economy and markets in the next 10 days, analysts may well get a better handle on the relative importance of the contributors to what, in historical terms, is an unusual 60 basis point rise in 10-yest UST yields from the day the Federal Reserve… pic.twitter.com/vwQhuI0XoV
— Mohamed A. El-Erian (@elerianm) October 28, 2024
McDonald’s earnings beat, sales miss
According to data from Gordon Haskett Research Advisors, U.S. foot traffic at McDonald’s locations dropped roughly 10% following the CDC’s announcement of the outbreak last Tuesday. The company did not provide specific comments on the impact of the outbreak in its earnings release.
Investors will be closely watching for any updates from management during the earnings conference call later this morning. Despite the near-term challenges, many analysts remain bullish on McDonald’s long-term prospects. The company’s scale, brand loyalty, and investments in digital and delivery are seen as key competitive advantages.
The Nasdaq Composite just reached a fresh ATH. Since it was launched in February 1971, it has delivered an average annual return of 10.8%. pic.twitter.com/xePoA0V79T
— Holger Zschaepitz (@Schuldensuehner) October 29, 2024
Shares of McDonald’s were down 0.5% in pre-market trading on Tuesday. The stock has gained about 10% year-to-date, outperforming the broader market.
