Fast food giant, McDonald’s Corporation(MCD) reported increased profits for Q4, beating estimates on Wednesday.
The Oak Brook, IL based company reported fourth quarter earnings of $1.4 billion, or $1.38 per share, up from $1.38 billion, or $1.33 per share last year. Analysts expected to see EPS of $1.33.
Revenue increased to 6.95 billion from $6.82 billion last year. Analyst expected revenue of $6.9 billion.
Although the company beat expectations for the quarter, MCD saw minimal increases in sales. Locations open over a year increased sales by only 0.1%, and total U.S. sales rose only 0.3%. Sales in Europe declined 0.6% and customer traffic continued to decline. Rising competition continues to weaken earnings for MCD.
McDonald’s shares were mostly flat during premarket trading Wednesday. The stock has declined -8% in the past year.
The Bottom Line
Shares of McDonald’s (MCD) have a 3.31% dividend yield, based on last nights closing stock price of $92.95. The stock has technical support in the $88-$90 price area. If the shares can firm up, we see overhead resistance around the $94-$96 price levels.
McDonald’s Corporation(MCD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
FREE Dividend Stock Newsletter
Get the Dividend.com email newsletter to receive:
- A free copy of our acclaimed report, 5 Rules of Winning Dividend Stock Investing
- Free daily investing tips and picks from Dividend.com CEO Paul Rubillo
- Tons of great market analysis and recommendations