McDonald’s Corp (NYSE: MCD) said on Thursday that its earnings and revenue missed Wall Street estimates in the fiscal fourth quarter. The company attributed its dovish performance to the ongoing Coronavirus pandemic that weighed on its business in recent months.
The COVID-19 crisis has so far infected more than 26 million people in the United States and caused over 439 thousand deaths. McDonald’s had topped analysts’ forecast in the prior quarter (Q3).
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McDonald’s shares slid roughly 0.5% in premarket trading on Thursday. Including the price action, the stock is now exchanging hands at £152.12 per share. In comparison, it had plummeted to as low as £100.42 per share in the last week of March 2020 when the COVID-19 restrictions pushed its outlet into temporarily shutting down.
McDonald’s Q4 financial results versus analysts’ estimates
McDonald’s said that its net income in the fourth quarter came in at £1.01 billion that translates to £1.35 per share. In the comparable quarter of last year, it had reported a higher £1.15 billion of net income or £1.52 per share.
On an adjusted basis, the fast-food chain earned £1.25 per share in the recent quarter that represents a 14% year over year decline. McDonald’s said that it generated £3.89 billion of revenue in Q4 versus the year-ago figure of £3.98 billion.
According to FactSet, experts had forecast the company to record a higher £3.93 billion of revenue in the fourth quarter. Their estimate for adjusted per-share earnings stood at £1.30. In separate news from the United States, multinational manufacturer, Whirlpool Corporation, also reported its financial results for the fiscal fourth quarter on Wednesday.
McDonald’s valued restaurant closing costs at £21.97 million in Q4
The Chicago-based company saw a 5.5% annualised growth in its fourth-quarter U.S. comparable sales. Globally, comparable sales registered 1.3% lower than last year and matched the FactSet Consensus.
McDonald’s also warned on Thursday that the impact of the ongoing pandemic on its capacity and related restrictions on operating hours continue to weigh on its performance in key international markets. The U.S. firm valued restaurant closing costs at £21.97 million in the fourth quarter.
McDonald’s performed fairly upbeat in the stock market last year with an annual gain of a little under 20%. At the time of writing, the American fast-food company has a market cap of almost £113 billion and a price to earnings ratio of 31.59.
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