U.S. restaurant chain McDonald’s (MCD) has reported mixed financial results for the fourth and final quarter of 2023 as the escalating conflict in the Middle East impacts its global sales.
The Chicago-based company known for its burgers and fries reported Q4 earnings per share (EPS) of $2.95 U.S. compared to $2.82 U.S. that was expected among analysts.
McDonald’s revenue in the quarter totaled $6.41 billion U.S., which was less than the $6.45 billion U.S. forecast on Wall Street. Sales increased 8% from a year ago.
McDonald’s attributed the revenue miss to escalating conflict in the Middle East, which led its same-store sales to grow 3.4% in Q4, falling short of analyst estimates of 4.7%.
Outside the Middle East, all other global markets, including China, reported positive same-store sales growth in Q4 2023.
Domestic same-store sales at McDonald’s rose 4.3%, in line with Wall Street forecasts, driven by price hikes and digital sales growth.
In terms of forward guidance, McDonald’s reiterated its forecast that new restaurants will increase its system-wide sales growth by 2% this year.
The company previously announced plans to open more than 2,100 new restaurant locations this year as part of a broad expansion strategy.
McDonald’s also said that it will spend between $2.50 billion U.S. and $2.70 billion U.S. this year on capital expenditures, with most of that money going toward opening new restaurants.
The stock of McDonald’s has gained 11% in the last 12 months and currently trades at $297.05 U.S. per share.
