McDONALD'S REPORTS THIRD QUARTER 2024 RESULTS
Consolidated revenues for the quarter were nearly $6.9 billion, an increase over prior year of 3% (2% in constant currencies)
Systemwide sales* to loyalty members across approximately 50 loyalty markets were over $28 billion for the trailing twelve-month period and nearly $8 billion for the quarter
CHICAGO, Oct. 29, 2024 /PRNewswire/ -- McDonald's Corporation today announced results for the third quarter ended September 30, 2024.
"We will stay laser-focused on providing an unparalleled experience with simple, everyday value and affordability that our consumers can count on as they continue to be mindful about their spending," said Chairman and CEO Chris Kempczinski. "McDonald's will continue to follow our Accelerating the Arches playbook to drive long-term growth globally and win in this environment."
Third quarter financial performance:
Global comparable sales decreased 1.5%:
U.S. increased 0.3%
International Operated Markets segment decreased 2.1%
International Developmental Licensed Markets segment decreased 3.5%
Consolidated revenues increased 3% (2% in constant currencies).
Systemwide sales were flat (flat in constant currencies).
Consolidated operating income decreased 1% (1% in constant currencies). Results included $52 million of pre-tax transaction costs and non-cash impairment charges and $46 million of pre-tax restructuring charges associated with Accelerating the Organization. Excluding these current year charges, as well as prior year pre-tax charges of $26 million, consolidated operating income increased 2% (1% in constant currencies).**
Diluted earnings per share was $3.13, a decrease of 1% (1% in constant currencies). Excluding the current year charges described above of $0.10 per share, diluted earnings per share was $3.23, an increase of 1% (1% in constant currencies) when also excluding prior year charges.**
The Company declared a 6% increase in its quarterly cash dividend to $1.77 per share.
*Refer to page 4 for a definition of Systemwide sales.**Refer to pages 2 and 3 for additional details on our results for the third quarter 2024 and 2023.
1
COMPARABLE SALES
Increase/(Decrease)
Quarters Ended September 30,
2024
2023
U.S.
0.3 %
8.1 %
International Operated Markets
(2.1)
8.3
International Developmental Licensed Markets
(3.5)
10.5
Total
(1.5) %
8.8 %
U.S.: Comparable sales results reflect average check growth, partly offset by slightly negative comparable guest counts. Effective value and marketing campaigns featuring the core menu, successful restaurant level execution and continued digital and delivery growth contributed to slightly positive comparable sales results.
International Operated Markets: Segment performance was impacted by negative comparable sales across a number of markets, driven by France and the U.K.
International Developmental Licensed Markets: The continued impact of the war in the Middle East and negative comparable sales in China more than offset positive comparable sales in Latin America.
KEY FINANCIAL METRICS - CONSOLIDATEDDollars in millions, except per share data
Quarters Ended September 30,
Nine Months Ended September 30,
2024
2023
Inc/ (Dec)
Inc/ (Dec)
Excluding
Currency
Translation
2024
2023
Inc/ (Dec)
Inc/ (Dec)
Excluding
Currency
Translation
Revenues
$ 6,873
$ 6,692
3
%
2
%
$ 19,532
$ 19,088
2
%
2
%
Operating income
3,188
3,208
(1)
(1)
8,844
8,845
—
—
Net income
2,255
2,317
(3)
(3)
6,207
6,430
(3)
(3)
Earnings per share-diluted
$ 3.13
$ 3.17
(1)
%
(1)
%
$ 8.59
$ 8.76
(2)
%
(1)
%
Results for 2024 included the following:
Net pre-tax charges of $52 million, or $0.05 per share, for the quarter and $142 million, or $0.15 per share, for the nine months primarily consisted of transaction costs and non-cash impairment charges associated with the sale of McDonald's business in South Korea and transaction costs associated with the acquisition of McDonald's business in Israel
Pre-tax charges of $46 million, or $0.05 per share, for the quarter and $146 million, or $0.15 per share, for the nine months related to restructuring charges associated with the Company's internal effort to modernize ways of working (Accelerating the Organization)
Results for 2023 included the following:
Pre-tax charges of $26 million, or $0.02 per share, for the quarter and $224 million, or $0.23 per share, for the nine months related to the Company's Accelerating the Arches growth strategy, including restructuring charges associated with Accelerating the Organization
Excluding the above items, lower Selling, general, and administrative expenses and higher Franchised margins drove positive operating income performance for the quarter. Results for the nine months reflected positive operating income performance driven primarily by higher sales-driven Franchised margins, partly offset by higher Selling, general, and administrative expenses. Results for both periods reflected higher interest expense.
2
NET INCOME AND EARNINGS PER SHARE-DILUTED RECONCILIATION Dollars in millions, except per share data
Quarters Ended September 30,
Net Income
Earnings per share - diluted
2024
2023
Inc/ (Dec)
Inc/ (Dec)
Excluding
Currency
Translation
2024
2023
Inc/ (Dec)
Inc/ (Dec)
Excluding
Currency
Translation
GAAP
$ 2,255
$ 2,317
(3)
%
(3)
%
$ 3.13
$ 3.17
(1)
%
(1)
%
(Gains)/Charges
67
20
0.10
0.02
