McDonald’s (NYSE:MCD) on Thursday reported that its U.S. same-store sales jumped to 5.5% in its latest quarter, but the coronavirus pandemic is still adding costs and slowing recovery in many of its international markets.
As the fast-food giant enters 2021, it’s projecting that systemwide sales will rebound to surpass 2019 comparisons.
The company reported fourth-quarter net income of $1.38 billion, or $1.84 per share, down from $1.57 billion, or $2.08 per share a year earlier. The company reported that higher restaurant closing costs of $30 million and lower gains on the sales of restaurant businesses hurt profits for the quarter.
Excluding gains related to the sale of McDonald’s Japan stock and other items, McDonald’s earned $1.70 per share, missing the $1.78 per share expected by analysts.
Net sales dropped 2% to $5.31 billion, falling short of expectations of $5.37 billion. Worldwide same-store sales shrank by 1.3%, but improved from the third quarter.
In the United States, same-store sales were positive for the second straight quarter. The company’s home market reported same-store sales growth of 5.5%.
McDonald’s international operated markets, which includes France, Germany and Australia, was the laggard of the quarter. Its same-store sales fell 7.4%. Resurgences of COVID-19 hit most of the segment’s markets, leading to increased government restrictions.
However, the company reported that the United Kingdom and Australia both reported positive same-store sales growth for the quarter.
MCD shares jumped $1.86 to $208.86.
