McDonald's: charges and Middle East weigh in Q4

(CercleFinance.com) - McDonald's has reported lower-than-expected Q4 earnings on Monday, notably penalized by a restructuring charge.


McDonald's Q4 net income rose 7% to $2.04bn, or $2.80 per share, vs. $1.90bn (or $2.59 per share) a year earlier.

The consensus was expecting EPS of $2.82.

The fast-food giant states that its EPS would have been $2.85 excluding a $72m provision for the amortization of discontinued software and restructuring charges of $66m.

However, sales also disappointed, rising by just 8% to $6.41bn, slightly below analysts' expectations of $6.45bn.

Sales at McDonald's restaurants open for at least 13 months rose by 3.4% in Q4, with the 4.3% growth recorded in the US held back by an increase of only 0.7% at international franchises due to the conflict in the Middle East.

Following this publication, the share lost 0.7% in pre-trade trading on the New York Stock Exchange.


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