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Key Takeaways
- McDonald’s reported first-quarter earnings that missed estimates as its results were hurt by the effects of inflation on consumers and continuing boycotts in the Middle East.
- CEO Chris Kempczinski said consumers were watching their spending because of high prices.
- McDonald’s shares hit an all-time high in January, but they’ve stumbled since, losing close to 8% year to date.
McDonald’s (MCD) reported first-quarter earnings that missed estimates as its results were hurt by the effects of inflation on consumers and continuing boycotts in the Middle East.
Earnings Miss Estimates
The company posted first-quarter diluted earnings per share of $2.66, a 9% increase from the year-ago quarter but missing estimates compiled by Visible Alpha. Revenue increased 4.6% to $6.17 billion, slightly above forecasts.
Comparable store sales were up 1.9%, slowing sharply from the 12.6% growth it reported a year ago. Comparable store sales fell 0.2% at the International Developmental Licensed Markets unit “as the segment continued to be impacted by the war in the Middle East.”
Inflation’s Impact
CEO Chris Kempczinski said McDonald’s was feeling the effects of inflation, noting consumers “are more discriminating with every dollar that they spend.”
McDonald’s shares were little changed following the release, edging 0.1% lower to $273.25 as of noon E.T. Tuesday. Shares hit an all-time high in January, but they’ve stumbled since, losing close to 8% year to date.
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