McDonald’s Q4 2024 Earnings Report Summary

Date: February 10, 2025
Company: McDonald’s Corporation

Executive Summary

McDonald’s reported its earnings for the fourth quarter and full year 2024, highlighting mixed results across different markets. While global systemwide sales surpassed $130 billion, growth in comparable sales was minimal. U.S. sales declined, while international markets showed slight improvements. Operating income and revenue saw modest gains, but earnings per share remained flat. The company’s loyalty program continues to expand, reaching 175 million active users.

Key Financial Highlights

Fourth Quarter 2024 Performance

• Global Comparable Sales: Increased 0.4%
  • U.S.: Decreased 1.4% due to lower average check sizes, partially offset by increased customer visits.
  • International Operated Markets: Increased 0.1%, with positive growth in most markets but offset by weak performance in the U.K.
  • International Developmental Licensed Markets: Increased 4.1%, driven by strong growth in the Middle East and Japan.
• Total Revenue: $6.39 billion (flat year-over-year).
• Systemwide Sales: Increased 2% (in constant currencies).
• Operating Income: Increased 2% (3% in constant currencies).
• Net Income: $2.02 billion, down 1% from last year.
• Earnings Per Share (EPS): $2.80 (flat year-over-year).

Full Year 2024 Performance

• Global Comparable Sales: Decreased 0.1%
  • U.S.: Increased 0.2%
  • International Operated Markets: Decreased 0.2%
  • International Developmental Licensed Markets: Decreased 0.3%
• Total Revenue: Increased 2% to $25.92 billion.
• Systemwide Sales: Increased 1% (2% in constant currencies).
• Operating Income: Increased 1% to $11.71 billion.
• Net Income: $8.22 billion, down 3% year-over-year.
• Earnings Per Share (EPS): $11.39, down 1%.

Strategic & Operational Highlights

• Loyalty Program Growth:
  • Generated $30 billion in sales for the full year.
  • 90-day active users: Over 175 million across 60 markets (15% growth year-over-year).
• Restructuring & Transactions:
  • $221 million in restructuring costs related to the "Accelerating the Organization" initiative.
  • $70 million in transaction costs, mainly from the sale of the South Korean business and acquisition of operations in Israel.
• Stock Buybacks & Dividends:
  • Spent $2.82 billion on share buybacks.
  • Paid $4.87 billion in dividends.