In a release dated January 31^st McDonald’s Corporation, a bellwether for the QSR segment of the restaurant industry, reported results for the fourth quarter and FY 2022 ended December 31^st 2022. For the period, the Company earned $1,903 million on total revenue of $5,926 million with a diluted EPS of $2.59.  Comparable figures for the fourth quarter of fiscal 2021 were net income of $1,639 million on total revenue of $6,001 million with a diluted EPS of $2.18. Revenue declined by 1.4 percent but operating margin increased from 39.3 percent in the fourth quarter of 2021 to 43.6 percent for the most recent quarter. Gross margin for Company-operated stores in the fourth quarter fell from 17.3 percent in 2021 to 15.2 percent for the most recent quarter attributed to higher costs for labor, ingredients and packaging despite rises in menu items.

For FY 2022, the Company earned $6,177 million on total revenue of $23,183 million with a diluted EPS of $8.33.  Comparable figures for fiscal 2021 were net income of $7,545 million on total revenue of $23,223 million with a diluted EPS of $10.04. Results for 2022 include a $1,281 million charge resulting from the withdrawal from the Russian Federation; $271 million from the sale of Dynamic Yield and a $537 million tax settlement with the Republic of France.

In commenting on results, Chris Kempczinski, president and CEO stated, “Our Accelerating the Arches strategy is driving growth and building brand strength, delivering exceptional full-year performance in 2022 with over 10 percent comparable sales growth and 5 percent comparable guest count growth globally," He added, "While we expect short-term inflationary pressures to continue into 2023, we remain highly confident in Accelerating the Arches, which now includes a greater emphasis on restaurant openings."

For the fourth quarter of 2022, McDonald’s posted comparable sales growth in the U.S. of 10.3 percent compared to sales growth for the international operated markets segment of 16.5 percent and with global sales growth of 12.6 percent During the fourth quarter digital sales in the six top markets accounted for 35 percent of sales and attained $7 billion.

Projections for 2023 in the SEC 8K report included net restaurant expansion contributing 1.5 percent to system wide sales with an operating margin of 45 percent. On December 31st 2022 there were 40,375 McDonald’s locations with 2,106 Company-owned restaurants. During 2023 the Company will open 1,500 new restaurants with global sales increasing by 12.6 percent.

McDonald’s Corporation had a market capitalization of $199,600 million on January 31^st 2023.  Total assets on December 31^st 2022 amounted to $50,436 million of which 42.1 percent comprised lease right-of-use assets, goodwill and intangibles.  Long-term debt and lease obligation were $50,638 million. MCD has ranged over 52-weeks from $217.68 to $281.67 with a 50-day moving average of $270.04. MCD trades with a forward P/E ratio of 25.6.  The 12-month trailing operating margin was 43.7 percent and profit margin, 25.4 percent.  Prior to release MCD closed on January 30^th at $270.98 but opened lower post-release on Tuesday 31^st closing down 1.3 percent to $267.48.