McDonald’s: Reports Q4 And Full Year 2020 Results

Chicago / IL. (mdc) McDonald’s Corporation announced results for the fourth quarter and year ended December 31, 2020. «2020 will be remembered as one of McDonald’s most challenging, yet inspiring, moments in our long history. The resilience of the McDonald’s System was on display – making safety and service a priority, putting our customers and people first, and running great restaurants,» said McDonald’s President and Chief Executive Officer Chris Kempczinski. «Against an uncertain backdrop, we are committed to staying true to our values and our brand purpose to feed and foster communities. By investing for the future and leveraging competitive strengths within our Accelerating the Arches strategy in drive-thru, delivery, and our growing digital presence, we’re confident we can continue to capture market share and drive long-term sustainable growth for all stakeholders.»

Fourth quarter financial performance

• Global comparable sales declined 1.3 percent while improving from the prior quarter, reflecting positive comparable sales in the U.S. of 5.5 percent, and negative comparable sales in the International Operated segment and International Developmental Licensed segment of 7.4 percent and 3.6 percent, respectively.
• Consolidated revenues decreased 2 percent (3 percent in constant currencies).
• Systemwide sales increased 1 percent (flat in constant currencies).
• Consolidated operating income decreased 7 percent (9 percent in constant currencies) and included USD 142 million of strategic gains primarily related to the sale of McDonald’s Japan stock. Excluding these gains, operating income decreased 13 percent (15 percent in constant currencies).
• Diluted earnings per share of USD 1.84 decreased 12 percent (13 percent in constant currencies). Excluding USD 0.14 per share of current year strategic gains primarily related to the sale of McDonald’s Japan stock, diluted earnings per share was USD 1.70 for the quarter, a decrease of 14 percent (15 percent in constant currencies) when also excluding USD 0.11 per share of prior year income tax benefit due to regulations issued in the fourth quarter of 2019.

Full year financial performance

• Global comparable sales declined 7.7 percent, reflecting positive comparable sales in the U.S. of 0.4 percent, and negative comparable sales in the International Operated segment and International Developmental Licensed segment of 15.0 percent and 10.5 percent, respectively.
• Consolidated revenues decreased 10 percent (10 percent in constant currencies).
• Systemwide sales decreased 7 percent (7 percent in constant currencies).
• Consolidated operating income decreased 19 percent (20 percent in constant currencies) and included USD 268 million of net strategic gains. Excluding these items, operating income decreased 23 percent (23 percent in constant currencies), when also excluding USD 74 million of net strategic charges from the prior year.*
• Diluted earnings per share of USD 6.31 decreased 20 percent (20 percent in constant currencies).

 
For additional information please read McDonald’s Corporation’s PDF file below (315 KB):

20210128-MCD-Q4-2020.