McDonald’s: Reports Fourth Quarter 2022 Results

Chicago / IL. (mcd) McDonald’s Corporation announced results for the fourth quarter ended December 31, 2022. «Our «Accelerating the Arches» strategy is driving growth and building brand strength, delivering exceptional full year performance in 2022 with over 10 percent comparable sales growth and 5 percent comparable guest count growth globally,» said President and CEO Chris Kempczinski. «While we expect short-term inflationary pressures to continue in 2023, we remain highly confident in «Accelerating the Arches», which now includes a greater emphasis on new restaurant openings. The «Accelerating the Organization» initiative will complement this strategy to enable the McDonald’s System to be faster, more innovative, and more efficient. We’re proud of our continued strong performance, but we’re not satisfied.»

Fourth quarter financial performance

  • Global comparable sales up 12.6 percent, reflecting strong comparable sales across all segments:
    • U.S. increased 10.3 percent
    • International Operated Markets segment increased 12.6 percent
    • International Developmental Licensed Markets segment increased 16.5 percent
  • Consolidated revenues decreased 1 percent (increased 5 percent in constant currencies).
  • Systemwide sales increased 5 percent (13 percent in constant currencies).
  • Consolidated operating income increased 8 percent (16 percent in constant currencies). Excluding USD 54 million of prior year charges primarily related to the 2021 sale of McD Tech Labs, consolidated operating income increased 5 percent (14 percent in constant currencies).
  • Diluted earnings per share was USD 2.59, an increase of 19 percent (26 percent in constant currencies). Excluding the prior year charges described above, diluted earnings per share increased 16 percent (23 percent in constant currencies).

Full year financial performance

  • Global comparable sales up 10.9 percent, reflecting strong comparable sales across all segments:
    • U.S. increased 5.9 percent
    • International Operated Markets segment increased 13.3 percent
    • International Developmental Licensed Markets segment increased 16.0 percent
  • Consolidated revenues were flat (increased 6 percent in constant currencies).
  • Systemwide sales increased 5 percent (11 percent in constant currencies).
  • Consolidated operating income decreased 10 percent (3 percent in constant currencies). 2022 results included USD 1.3 billion of charges related to the sale of the Company’s business in Russia and a gain of USD 271 million related to the Company’s sale of its Dynamic Yield business. Excluding these items along with net gains in 2021, consolidated operating income increased 3 percent (10 percent in constant currencies).

For additional information please read the company’s PDF file below (213 KB).

20230201-MCDONALDS-Q42022.