KEY POINTS
* Boycotts after McDonald’s Israeli licensee offered discounts for soldiers pressured sales in the Middle East and some markets outside of the region.
* U.S. sales have slowed as low-income customers pull back their spending.
* McDonald’s shares have fallen 7.7% year to date, dragging its market value down to $197 billion.
McDonald’s is poised to unveil its first-quarter earnings prior to the market opening on Tuesday.
Here’s the forecast according to analysts surveyed by LSEG:
* Earnings per share: Expected to be $2.72
* Revenue: Anticipated to reach $6.16 billion
The renowned fast-food titan faced disappointing sales in the fourth quarter. Sales were adversely affected by boycotts following discounts offered to soldiers by its Israeli licensee, impacting markets in the Middle East and beyond. Additionally, the company had to temporarily close some outlets to ensure the safety of its employees amidst protests.
Earlier this month, McDonald’s declared its intention to acquire the 225 restaurants operated by its Israeli franchisee.
In the United States, the hamburger giant witnessed a decline in spending among low-income patrons. Analysts project this trend to persist in the current quarter, forecasting a meager domestic same-store sales growth of only 2.6%, as per estimates from StreetAccount.
McDonald’s shares have depreciated by 7.7% year to date, resulting in a decline in its market capitalization to $197 billion.
