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In a press release dated January 29th 2020 McDonald's Corporation (MCD) announced results for the 4th Quarter and Fiscal 2019 ending December 31st 2019.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)
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Chris Kempczinski.
President and CEO
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Quarter Ending December 31st
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2019
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2018
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Difference (%)
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Sales: (43% Company stores)
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$5,349,000
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$5,163,000
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+3.6
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Gross profit Company stores:
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$423,700
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$414,600
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+2.2
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Operating income:
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$2,292,600
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$1,999,500
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+14.7
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Pre-tax Income
Net Income
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$2,026,800
$1,572,200
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$1,751,400
$1,415,300
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+15.7
+11.1
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Diluted earnings per share:
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$2.08
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$1.82
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+14.3
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Gross Margin Company stores (%)
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17.9
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17.5
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+2.3
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Operating Margin (%)
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42.9
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38.7
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+10.9
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Profit Margin (%)
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29.4
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27.4
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+7.2
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Long-term Debt:
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$34,118,000
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$31,075,300
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+9.8
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12 Months Trailing:
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Return on Assets (%)
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Return on Equity (%)
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Operating Margin (%)
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Profit Margin (%)
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Total Assets
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$47,510,800*
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$32,811,200
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+44.8
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Market Capitalization
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$162,790,000
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*Included "right-of-use "value of $13.26 Billion introduced in FY 2019
52-Week Range in Share Price: $ 173.41 to $221.93: 50-day moving average $203.99
Market Close 28th pre-release $210.35. Close 29th post-release $216.03
Forward P/E 23.5 Beta 0.5 5-year PEG ratio 3.4
For FY 2019 MCD posted net earnings of $6.03 Billion on sales of $21.08 Billion with an EPS of $7.88. Comparative values for FY 2018 were net earnings of $5.92 Billion on sales of $21.05 Billion with an EPS of $7.54.
In commenting on results president and CEO Chris Kempczinski stated, "2019 marked a year of significant milestones for McDonald's - including surpassing $100 billion in System-wide sales and achieving our highest global comparable sales growth in over a decade," "Through the execution of our Velocity Growth Plan, we once again served more customers the food they crave, marking three consecutive years of global comparable guest count growth."
He pointed to Fourth quarter highlights that included:-
· Strong global comparable sales growth of 5.9 percent with increases in the International Operated segment of 6.2 percent and 5.1 percent in the U.S. in addition to the International Developmental Licensed segment of 6.6%.
· Consolidated revenues increased 4.0 percent in constant currencies.
· System-wide sales increased 6.0 percent
· Consolidated operating income increased 15.0 percent reflecting $140 million of prior year impairment charges.
· Diluted earnings per share of $2.08 increased 14 percent. Results for the fourth quarter 2019 included $0.11 per share of income tax benefit due to new regulations issued in the fourth quarter 2019 related to the Tax Cuts and Jobs Act of 2017 ("Tax Act"). Excluding this item, diluted earnings per share was $1.97