McDonald's under expectations, -12% 4th quarter profit
Covid continues to weigh, it holds up only in the USA
McDonald's below expectations in the fourth quarter of the fiscal year. The Covid-19 pandemic continues to weigh on the American fast food chain, which recorded a 12% drop in profit compared to last year, due to government restrictions in all the countries in which it operates. The result was partially offset by stronger operating performance in the US. Worldwide comparable sales fell by 1.3%, in line with expectations, while they were up 5.5% in the US.
Specifically, McDonald's posted net income of $ 1.38 billion ($ 1.84 / share) in the fourth quarter, compared to a year earlier's profit of $ 1.57 billion ($ 2.08 / share). Excluding the extraordinary items, the multinational recorded an adjusted earnings of $ 1.7 per share in the period, however below the estimate of $ 1.77 / share expected by analysts. Quarterly revenue fell 2% to $ 5.31 billion, just short of experts' forecast of $ 5.36 billion.
EFA News - European Food Agency