On Monday before the opening bell, McDonald’s is set to release its fourth-quarter earnings. According to Wall Street analysts surveyed by LSEG, previously known as Refinitiv, the following expectations are in place:Earnings per share: $2.82 anticipatedRevenue: $6.45 billion projectedIn the first half of 2023, the fast-food giant experienced strong performance with double-digit growth in sales at existing stores and an increase in customer visits. However, in the third quarter, there was a notable decline in traffic to its U.S. restaurants as low-income consumers reduced their spending. For the fourth quarter, analysts anticipate this challenging trend to persist.It is expected that McDonald’s will only see a 4.7% growth in quarterly same-store sales, a significant drop from the 10.9% reported a year ago. The company’s price increases have slowed down, and there has been a general decline in foot traffic across the industry in November and December.CEO Chris Kempczinski has cautioned investors that the Israel-Hamas conflict has negatively impacted sales in the Middle East and certain other markets. Calls for a boycott of McDonald’s have emerged on social media after its Israeli franchisee offered discounts to soldiers. A similar boycott situation unfolded with Starbucks in relation to the Middle East, resulting in a decline in U.S. customer traffic in its cafes.In 2024, Wall Street predicts that McDonald’s will achieve earnings of $12.53 per share, up 6.1% from the previous year, and generate $27.14 billion in revenue, marking a 6.3% increase.Over the past year, McDonald’s stock has increased by 12%, reaching a market value of approximately $215 billion.
