Global Comparable Sales Growth: Nearly 2% in the first quarter.
Adjusted Earnings Per Share: $2.70, an approximate 2% increase in constant currencies.
Adjusted Operating Margin: Nearly 45%.
Restaurant Margin: Generated nearly $3.5 billion, up about 4% in constant currency.
Adjusted Effective Tax Rate: 19.9% for the quarter.
Future Guidance
Top Line Growth: Expected to moderate in 2024 due to a tougher economic climate.
Quarter 2 Outlook: U.S. comp sales expected to start roughly flat.
Rest of Year Prediction: Likely to be below the historical range of 3%-4% in U.S. and IOM segments due to macroeconomic headwinds.
Investment Focus: Continued investment in strategic growth areas such as digital, technology, and restaurant development, aiming for 50,000 restaurants by the end of 2027.
Trends, Market Conditions, Sentiment
Consumer Spending Pressures: Elevated due to broader macroeconomic challenges, affecting industry traffic in major markets.
Affordability Focus: Emphasis on delivering value through everyday affordable menus and digital offerings.
Digital and Loyalty Programs: Increased penetration and loyalty sales highlighted, with digital orders and mobile app engagement driving growth.
Market Share Strategy: Leveraging McDonald’s scale to maintain competitive advantage and focus on market share gains within the QSR industry.
Operational Investments: Investments in restaurant modernization, digital transformation, and global business services for long-term growth.
Notable Quotes
Chris Kempczinski: “McDonald’s offers delicious food at a great value, and customers continue to tell us this through our survey work.”
Ian Borden: “Despite the headwinds that persist, we remain well positioned with the unique strength and scale that only the McDonald’s system can provide.”
Chris Kempczinski on U.S. Value Strategy: “The opportunity for us in the U.S. is to get more aligned to the system around a strong national value proposition to drive high consumer awareness.”
Chris Kempczinski on Consumer Expectations: “That has always been our promise: to deliver delicious feel-good moments at an affordable price each and every day.”
Ian Borden on Adjustments: “We know what we need to do and how to do it well, and the financial strength of our business puts us in a position to be able to do that better than anyone else.”
