McDonald's (MCD, Financial) presented blended Q4 results on Feb. 10, 2025, and the stock climbed well nearly 2% on pre-market trading, because its overseas sales growth helped to balance its slow domestic performance. The worldwide comparable sales at McDonald's rose by 0.4% above analyst predictions, which indicated a 0.93% decline, but U.S. comparable sales decreased by 1.4% below forecasts of -0.41%. Internationally operated markets exceeded forecast expectations through a 0.1% increase despite predictions showing sales would decrease by 1.14%, while international developmentally licensed markets delivered 4.1% growth compared to the forecasted 0.38% decline.
The company achieved a 1% yearly increase in operating income that resulted in $2.02 billion in net income with $2.80 earnings per share. McDonald's adjusted earnings per share amounted to $2.83, while revenue decreased to $6.39 billion against market predictions for $6.45 billion.
McDonald's predicts its operating margin will reach the middle to highest band of the 40% range during 2025, while its interest costs will increase by 4% to 6% due to elevated debt levels and interest rates. According to McDonald's projections, they will allocate C$3 billion to C$3.2 billion for restaurant expansion across the world with a focus on 600 new U.S. locations in addition to 2,200 global new restaurants. The company predicts its free cash flow conversion to land between low-to-mid 80%.
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