McDonald's Profit Tops - Revenue Light
July 26, 2022
reported results for the second
quarter ended June 30, 2022. The firm's earnings per share of $2.55
adjusted beat the $2.47 expectation.
But, their revenue
of $5.72 billion was short of the $5.81 billion expectation.
“The McDonald’s System continues to demonstrate strength and
resiliency,” said McDonald’s President and Chief Executive Officer,
Chris Kempczinski. “Our second quarter performance reflects outstanding
execution against our Accelerating the Arches strategy. By focusing on
our customers and crew, enabled by a rapidly growing digital capability,
we delivered global comparable sales growth of nearly 10%. Nonetheless,
the operating environment across the competitive landscape remains
challenging. While we are planning for a wide range of scenarios, I am
confident that our plans and people position McDonald’s to weather this
environment better than others.”
Second quarter financial
Global comparable sales increased
9.7%, reflecting positive comparable sales across all segments:
Operated Markets segment increased 13.0%
Developmental Licensed Markets segment increased 16.0%
revenues decreased 3% (increased 3% in constant currencies).
increased 4% (10% in constant currencies).
operating income decreased 36% (30% in constant currencies).
Results included $1.2 billion of charges related to the sale of
the Company's business in Russia and a gain of $271 million
related to the Company's sale of its Dynamic Yield business.
Excluding these current year net charges and prior year net
gains of $98 million, primarily related to the sale of
McDonald's Japan stock, consolidated operating income was flat
(increased 7% in constant currencies).
Diluted earnings per share was $1.60, a
decrease of 46% (41% in constant currencies). Excluding the net
charges described above of $0.90 per share and nonoperating
expense of $0.05 per share related to the settlement of a tax
audit in France, diluted earnings per share for the quarter was
$2.55, an increase of 8% (14% in constant currencies), when also
excluding prior year net pre-tax gains of $0.10 per share and
income tax benefits of $0.48 per share