Visitors attend a McDonald’s New Year celebration on January 25, 2024 in Shanghai, China.

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McDonald’s Reported Mixed quarterly results on Monday as turmoil in the Middle East hurt its sales in those markets.

The company’s shares fell less than 1% in premarket trading.

Based on a survey of analysts by LSEG, formerly Refinitiv, McDonald’s reports compared to Wall Street expectations:

  • Earnings per share: $2.95 adjusted vs $2.82 expected
  • Revenue: $6.41 billion vs. $6.45 billion expected

The fast food giant reported net income of $2.04 billion, or $2.80 per share, in the fourth quarter, up from $1.9 billion, or $2.59 per share, a year earlier.

Excluding the write-off of software no longer in use, restructuring costs and other items, McDonald’s earned $2.95 per share.

Net sales rose 8 percent to $6.41 billion.

China’s global same-store sales rose 3.4 percent in the quarter, below StreetAccount’s estimate of 4.7 percent, as its Middle East sales struggled.

Its same-store sales in the International Development Licensed Markets segment saw just 0.7 percent growth. McDonald’s said the division’s sales fell as a result of the Israel-Hamas war.

“The company is monitoring the evolving situation, which it expects to have a negative impact on system-wide sales and revenue for as long as the war continues,” McDonald’s said in a regulatory filing.

All other markets in the segment, like China and Japan, reported positive same-store sales growth for the quarter.

Domestic same-store sales rose 4.3 percent, in line with expectations, driven by higher menu prices. The company also credited the increase in effective marketing and digital sales.

In the third quarter, McDonald’s said its U.S. traffic declined as lower-income customers pulled back their spending. It was the first sign that diners were shying away from the chain’s high prices. McDonald’s is also rolling out one. better A nationwide version of its burger, as it tries to convince customers that its prices are worth it.

The company’s International Operated Markets segment, which includes Canada, Australia and Germany, reported same-store sales growth of 4.4 percent, shy of StreetAccount’s estimate of 5.1 percent. However, same-store sales in France declined.

For 2024, McDonald’s reiterated its forecast from December that new restaurants would increase its systemwide sales by about 2%, excluding currency changes. The chain plans to open more than 2,100 new locations this year as part of a broader expansion. Strategy To accelerate its expansion and reach more customers.

The company also said it would spend between $2.5 billion and $2.7 billion on capital expenditures this year. More than half of that money will go toward opening new restaurants in the U.S. and its international markets.

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