McDonald's misses the target with Q4 earnings as it looks to boost value perception in 2025

Published On Feb 10, 2025, 10:33 AM

McDonald's reported disappointing Q4 earnings, missing expectations for both revenue and earnings per share. Revenue fell slightly to $6.39 billion, against a forecast of $6.45 billion, while adjusted earnings per share came in at $2.80, below the $2.84 estimate. The company's same-store sales grew by only 0.4%, driven by international markets, while U.S. sales dropped by 1.4%. CEO Chris Kempczinski indicated a need for urgency in improving customer traffic and mentioned the launch of a new value-focused menu in 2025 to attract customers back.

Stock Forecasts

MCD

Positive

Despite the disappointing Q4 results, there are signs of potential recovery as the company looks to innovate with its McValue menu in 2025. Expectations for a rebound in the second half of 2025 could lead to positive trends, particularly as comparisons become easier. However, concerns remain regarding the reliance on discount promotions which might affect profit margins.

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