McDonald's Beats Estimates, But Continues to See Weak Increases in Sales (MCD)

McDonald’s Beats Estimates, But Continues to See Weak Increases in Sales (MCD)

RSS

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.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

Free Updates

Join over 100,000 investors who get the latest news from Dividend.com.

Best Dividend Stocks

Looking for stocks that are poised for growth and pay solid dividends? Visit our list of the:

Best Dividend Stocks

Partner Center

Best CD Rates

Sitting on some extra cash and looking for the most current and profitable CD Rates?

Get The Best CD Rates

14 Day Free Trial

Earn more from your dividend portfolio within the next 14 days.

Sign Up Today