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McDonald’s Corp. Reports on Q3 of FY 2018

10/23/2018

In a press release dated March 23rd McDonald's Corp. (MCD) announced results for the 3rd Quarter of Fiscal 2018 ending September 3rd 2018.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

3rd Quarter Ending.

2018

2017

Difference (%)

Sales:

Q3 2018, 46% from Company stores; Q3 2017, 53%

$5,369,400

$5,754,600

-6.7

Gross profit Company stores:

$463,100

$584,500

-20.9

Operating income:

$2,417,700

$3,079,400

-21.5

Net Income

$1,637,700

$1,883,700

-13.1

Diluted earnings per share:

$2.10

$2.32

-9.5

Gross Margin, Company stores (%)

18.7

19.1

-2.1

Operating Margin (%)

45.0

53.5

-15.9

Profit Margin (%)

30.5

32.7

-6.7

Long-term Debt: Dec. 31st 2017/2016

$29,536,000

$25,875,000

+14.1

12 Months Trailing:

     

Return on Assets (%)

16.1

   

Return on Equity (%)

-

   

Operating Margin (%)

39.2

   

Profit Margin (%)

25.3

   

Total Assets Dec. 31st 2017/2016

$33,803,000

$31,024,000

+8.9

Market Capitalization

$136,800,000

   

52-Week Range in Share Price: $146.84 to $178.70

Market Close 22nd Oct. (pre-release) $171.02 14H30 23 rd Oct. $176.92 (+6.2%)

Forward P/E: 21.5: Beta +0.7

For the 3rd Quarter global same-store sales increased 4.3%. U.S. +2.4% (compared to 2.6% consensus estimate)

MCD operates in 120 nations with 37,557 stores. U.S. had 13,948 stores at the end of Q3

For the nine-months of 2018 MCD earned $4.5 billion on sales of $15.86 billion with an EPS of $5.72. Comparative values for Q1-3 of FY 2017 were a net profit of $5.48 on sales of $17.48 billion with an EPS of $5.48

The adverse comparison between Q3 2018 and Q3 2017 is attributed to revenue of $850 million from sale of assets in China in 2017, the re-franchising program and restructuring charges.

In commenting on results McDonald's President and CEO, Steve Easterbrook stated, "In addition to achieving thirteen consecutive quarters of positive global comparable sales, we have made substantial progress modernizing restaurants around the world, enhancing hospitality and elevating the experience for the millions of customers we serve every day. We remain confident that our strategy will drive long-term, profitable growth,"