Chicago / IL. (mdc) McDonald’s Corporation announced results for the first quarter ended March 31, 2022. «In a quarter that saw an increasingly complex and uncertain operating environment, I am proud to share that once again the Arches have shone brightly,» said President and Chief Executive Officer Chris Kempczinski on April 28. «Our strong performance in the first quarter was underpinned by global comparable sales up nearly 12 percent, reflecting broad-based momentum across all segments. In most of our major markets, we sustained QSR traffic share gains by focusing on elevating our brand, accelerating digital channels and showcasing our core equities of chicken and beef. By staying on the side of the consumer and executing our strategy, Accelerating the Arches, we have continued to drive growth. It is why I believe there has never been a better time to be part of brand McDonald’s.»
First quarter financial performance
- Global comparable sales increased 11.8 percent, reflecting positive comparable sales across all segments:
- U.S. increased 3.5 percent
- International Operated Markets segment increased 20.4 percent
- International Developmental Licensed Markets segment increased 14.7 percent
- Consolidated revenues increased 11 percent (14 percent in constant currencies).
- Systemwide sales increased 10 percent (14 percent in constant currencies).
- Consolidated operating income increased 1 percent (3 percent in constant currencies). The Company temporarily suspended operations during the quarter in Russia and Ukraine as a result of the military conflict in the region. Results included USD 27 million of costs related to the continuation of employee salaries, lease and supplier payments, as well as USD 100 million of costs for inventory in the Company’s supply chain that likely will be disposed of due to restaurants being temporarily closed. Excluding these current year costs and prior year strategic gains of USD 135 million, primarily related to the sale of McDonald’s Japan stock, consolidated operating income increased 14 percent (18 percent in constant currencies).
- Diluted earnings per share was USD 1.48, a decrease of 28 percent (27 percent in constant currencies). Excluding the costs to support the Company’s businesses in Russia and Ukraine of USD 0.13 per share, as well as a nonoperating expense to reserve for a potential settlement related to an international tax matter of USD 0.67 per share for the quarter 2022, diluted earnings per share for the quarter was USD 2.28, an increase of 19 percent (22 percent in constant currencies) when also excluding strategic gains of USD 0.13 per share for the quarter 2021.
Impact of Russia-Ukraine Military Conflict
During the first quarter of 2022, McDonald’s announced it was temporarily suspending operations and closing restaurants in Russia and Ukraine. The temporary closures were effective at the end of February in Ukraine and mid-March in Russia. The Company is supporting its businesses in these markets through the continuation of employee salaries and lease payments as well as providing support to the Company’s supply chain in the region.
For additional information please refer to the company’s news release (PDF | 107 KB):20220516-MCDONALDS-Q1-2022