McDonald’s: Reports Q4 and FY-2021 Results

Chicago / IL. (mdc) McDonald’s Corporation announced results for the fourth quarter and year ended December 31, 2021. «While 2021 was a year of continued challenges around the world, the McDonald’s System came together with unparalleled dedication and delivered truly exceptional performance,» said McDonald’s President and Chief Executive Officer, Chris Kempczinski. «We enter this new year with a clear focus on creating seamless and memorable customer experiences and harnessing our momentum to drive long-term, sustainable growth for all of our stakeholders.»

Fourth quarter financial performance

  • Global comparable sales increased 12.3 percent (10.8 percent on a 2-year basis), reflecting positive comparable sales across all segments:
    • U.S. increased 7.5 percent (13.4 percent on a 2-year basis)
    • International Operated Markets segment increased 16.8 percent (8.2 percent on a 2-year basis)
    • International Developmental Licensed Markets segment increased 14.2 percent (10.1 percent on a 2-year basis)
  • Consolidated revenues increased 13 percent (14 percent in constant currencies).
  • Systemwide sales increased 13 percent (14 percent in constant currencies).
  • Consolidated operating income increased 12 percent (13 percent in constant currencies). Excluding strategic charges of USD 54 million, primarily related to the sale of McD Tech Labs in 2021, and strategic gains of USD 142 million, primarily related to the sale of McDonald’s Japan stock in 2020, consolidated operating income increased 23 percent (24 percent in constant currencies).
  • Diluted earnings per share was USD 2.18, an increase of 18 percent (20 percent in constant currencies). Excluding strategic charges of USD 0.05 per share in 2021 and strategic gains of USD 0.14 per share in 2020, diluted earnings per share for the quarter was USD 2.23, an increase of 31 percent (33 percent in constant currencies).

Full year financial performance

  • Global comparable sales increased 17.0 percent (8.0 percent on a 2-year basis), reflecting positive comparable sales across all segments:
    • U.S. increased 13.8 percent (14.3 percent on a 2-year basis)
    • International Operated Markets segment increased 21.6 percent (3.4 percent on a 2-year basis)
    • International Developmental Licensed Markets segment increased 16.6 percent (4.4 percent on a 2-year basis)
  • Consolidated revenues increased 21 percent (18 percent in constant currencies) to USD 23.2 billion.
  • Systemwide sales increased 21 percent (18 percent in constant currencies) to USD 112.5 billion.
  • Consolidated operating income increased 41 percent (38 percent in constant currencies) to USD 10.4 billion.
  • Diluted earnings per share was USD 10.04, an increase of 59 percent (56 percent in constant currencies). Results for 2021 and 2020 included USD 0.28 per share and USD 0.26 per share, respectively, of net strategic gains, primarily related to the sale of McDonald’s Japan stock. Results for 2021 also reflected USD 0.48 per share of income tax benefits as a result of a change in the U.K. statutory income tax rate. Excluding these items, diluted earnings per share for the quarter was USD 9.28, an increase of 53 percent (50 percent in constant currencies).
  • Cash provided by operations was USD 9.1 billion, and free cash flow was USD 7.1 billion, a 54 percent increase over the prior year.

For additional information please refer to the company’s news release (PDF | 78 KB):

20220128-MCDONALDS-Q4-2021
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