In a release dated October 30^th McDonald’s Corporation, a bellwether for the QSR segment of the restaurant industry, reported results for the third quarter of FY 2023 ended September 30^th. For the period, the Company earned $2,317 million on total revenue of $6,692 million with a diluted EPS of $3.17.  Comparable figures for the third quarter of fiscal 2022 were net income of $1,982 million on total revenue of $5,872 million with a diluted EPS of $2.68. Revenue increased by 13.7 percent and operating margin advanced from 47.1 percent in the third quarter of 2022 to 47.9 percent for the most recent quarter. Gross margin for Company-operated stores rose from 16.2 percent in the third quarter of 2022 to 16.5 percent for the most recent quarter attributed to lower costs for food ingredients and packaging, rationalization of menus, the Accelerating the Arches efficiency initiative, increased traffic and promotions including the Grimace milkshake. The Company may be benefitting from trade-down from restaurant dining in the demographic with an annual income of $100,000.

In commenting on results, Chris Kempczinski, president and CEO stated, “With global Systemwide sales growth of 11 percent, our third quarter results reflect our position of strength as the industry leader,” He added “The macroeconomic environment is unfolding in line with our expectations for the year, and we continued to deliver convenience and value for our customers. Thanks to the entire McDonald's System's outstanding execution of Accelerating the Arches, we remain confident in our future and the strategic direction of our business.”

For the third quarter of FY 2023, McDonald’s posted comparable store sales growth in the U.S. of 8.1 percent with comparable store sales growth for the international operated markets segment of 8.3 percent and with global comparable store sales growth of 8.8 percent During the second quarter digital sales in the six top markets accounted for 40 percent of sales and attained $ billion.

On November 20^th the Company announced purchase of the minority equity held by the Carlyle Group in CITIC, the McDonald’s entity operating in China. McDonald’s Corporation will now hold a minority 48 percent share in CITIC.

Projections for 2023 in the SEC 10-Q report included net restaurant expansion contributing 1.5 percent to system wide sales with an operating margin of 45 percent. On September 30^th 2022 there were 41,198 McDonald’s locations* with approximately 2,050 Company-owned restaurants. During 2023 the Company will open 2,000 new restaurants globally. According to the report most will be traditional in design but the Company will consider alternatives including a test of a small free-standing ‘CosMC’ format.

McDonald’s Corporation had a market capitalization of $203,390 million on November 21^st 2023.  Total assets on September 30^th 2022 amounted to $52,089 million of which 15.4 percent comprised lease right-of-use assets, goodwill and intangibles.  Long-term debt and lease obligation were $50,066 million. MCD has ranged over the past 52-weeks from $245.73 to $299.35 with a 50-day moving average of $264.07. MCD trades with a forward P/E ratio of 22.5.  The 12-month trailing operating margin was 47.5 percent and profit margin, 33.3 percent. Return on assets was 14.3 percent. Prior to release MCD closed on Friday October 27^th at $255.80 but opened higher post-release on Monday October 27^th at $261.10.