McDonald's stock slid Monday after the Dow Jones fast food giant served up better-than-expected fourth-quarter earnings but came up short on sales. Shares are trading below a buy point near all-time highs.
McDonald's reported adjusted earnings of $2.95 per share, up 14% from last year, continuing its five quarter streak of double-digit gains. Revenue increased 8% to $6.41 billion.
FactSet analysts expected McDonald's stock earnings of $2.83 per share on 8.8% sales growth to $6.45 billion.
Company-owned restaurant sales jumped 12% to $2.47 billion in Q4 while franchise restaurant revenue climbed 6% to $3.87 billion.
McDonald's reported 3.4% global comparable sales growth for the quarter, short of the 4.7% increase that Wall Street anticipated. U.S. same-store sales rose 4.3% during Q4, driven by "strategic menu price increases." Comparable sales in international operated markets increased 4.4%. McDonald's reported international developmental licensed markets saw just a 0.7% uptick in comparable sales, due to the impact of the war in the Middle East.
Full-year adjusted earnings increased 18% to $11.94 per share, coming in above FactSet expectations of $11.80 per share. McDonald's reported 2023 sales of $25.49 billion, up 10% from the year prior but shy views of $25.53 billion.
McDonald's Stock Performance
McDonald's stock fell 3.7% Monday, sliding from a 295.97 buy point for a cup-with-handle base. McDonald's retreated from the buy point after a late December breakout, hitting a record high of 302.39 on Jan. 22. The Monday move pushed shares back below their 50-day moving average.
MCD stock is down 3.5% so far this year.
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