McDonald’s Corp (NYSE: MCD) is up 3.0% on Thursday after the fast-food company said higher prices and strong international sales helped it perform better-than-expected in the fiscal first quarter.
What McDonald’s Q1 earnings report tells us
Net income printed at $1.10 billion versus the year-ago figure of $1.54 billion.
Per-share earnings of $1.48 were down 28% from last year’s $2.05.
On an adjusted basis, per-share earnings came in at $2.28 in fiscal Q1.
At $5.67 billion, revenue noted a year-over-year growth of 11%.
U.S. comparable sales jumped 3.5%, as per the earnings press release.
FactSet consensus was for $2.17 of adjusted EPS on $5.57 billion in revenue.
International operated markets segment and international developmental licenses markets segment were up 20.4% and 14.7% in Q1, respectively.
Evercore’s David Palmer reacts to McDonald’s Q1 results
The stock is down 5.0% for the year. On CNBC’s “Squawk on the Street”, Evercore ISI’s David Palmer said:
We see the stock creeping higher from here. Overall, you have a good dividend, its inflation protected, even more so than many of the so-called consumer staples. McDonald’s has been able to drive tons of price over the years. So, this will be well-positioned. We’re back to looking at MCD as an inflation-protected staple.
McDonald’s performance was particularly impressive considering tough comps, inflation, the Ukraine war, and the COVID lockdowns in China. Such macroeconomics factors, however, continue to be a headwind for the coming months.
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