Chicago / IL. (mdc) McDonald’s Corporation announced results for the third quarter ended September 30, 2023. «With global Systemwide sales growth of 11 percent, our third quarter results reflect our position of strength as the industry leader,» said President and Chief Executive Officer, Chris Kempczinski. «The macroeconomic environment is unfolding in line with our expectations for the year, and we continued to deliver convenience and value for our customers. Thanks to the entire McDonald’s System’s outstanding execution of Accelerating the Arches, we remain confident in our future and the strategic direction of our business.»
Third quarter financial performance
- Global comparable sales increased 8.8 percent, reflecting strong comparable sales across all segments:
- U.S. increased 8.1 percent
- International Operated Markets segment increased 8.3 percent
- International Developmental Licensed Markets segment increased 10.5 percent
- Consolidated revenues increased 14 percent (11 percent in constant currencies).
- Systemwide sales increased 11 percent (10 percent in constant currencies).
- Consolidated operating income increased 16 percent (13 percent in constant currencies) and included USD 26 million of pre-tax charges, primarily related to restructuring costs associated with the Company’s internal effort to modernize ways of working (Accelerating the Organization).
- Diluted earnings per share was USD 3.17, an increase of 18 percent (15 percent in constant currencies).
- The Company declared a 10 percent increase in its quarterly cash dividend to USD 1.67 per share.
Comparable Sales: Change Q3-2023 versus Q3-2022
| Q3-2023 | Q3-2022 | |||
| U.S. | 8.1 % | 6.1 % | ||
| International Operated Markets | 8.3 | 8.5 | ||
| International Developmental Licensed Markets + Corporate | 10.5 | 16.7 | ||
| Total | 8.8 % | 9.5 % |
- U.S.: Comparable sales results benefited from strong average check growth driven by strategic menu price increases. Successful restaurant level execution, effective marketing campaigns and continued digital and delivery growth contributed to strong comparable sales results.
- International Operated Markets: Segment performance was driven by strong comparable sales in most markets, led by the U.K., Germany and Canada.
- International Developmental Licensed Markets: The quarter reflected strong comparable sales in all geographic regions.
Key Financial Metrics – Consolidated
USD in millions, except per share data — Change(1) = Change — Change(2) = Change Exclusive Currency Translation
| Q3|2023 | Q3|2022 | Change(1) | Change(2) | |||||
| Revenues | 6,692.2 | mio.USD | 5,872.1 | mio.USD | 14 | % | 11 | % |
| Operating income | 3,208.3 | 2,763.9 | 16 | 13 | ||||
| Net income | 2,317.1 | 1,981.6 | 17 | 14 | ||||
| Earnings per share-diluted | 3.17 | USD | 2.68 | USD | 18 | % | 15 | % |
USD in millions, except per share data — Change(1) = Change — Change(2) = Change Exclusive Currency Translation
| 9M|2023 | 9M|2022 | Change(1) | Change(2) | |||||
| Revenues | 19,087.5 | mio.USD | 17,256.1 | mio.USD | 11 | % | 11 | % |
| Operating income | 8,844.8 | 6,788.3 | 30 | 31 | ||||
| Net income | 6,429.8 | 4,274.0 | 50 | 51 | ||||
| Earnings per share-diluted | 8.76 | USD | 5.75 | USD | 52 | % | 53 | % |
Results for 2023 included the following
- Pre-tax charges of USD 26 million, or USD 0.02 per share, for the quarter and USD 224 million, or USD 0.23 per share, for the nine months, primarily related to restructuring costs associated with Accelerating the Organization
Results for 2022 included the following:
- Pre-tax charges of USD 1,281 million, or USD 1.44 per share, for the nine months, related to the sale of the Company’s business in Russia
- Pre-tax gain of USD 271 million, or USD 0.40 per share, for the nine months, related to the Company’s sale of its Dynamic Yield business
- USD 537 million, or USD 0.72 per share, for the nine months, of nonoperating expense related to the settlement of a tax audit in France
Excluding the above items, results for both periods reflected strong operating performance driven primarily by higher sales-driven Franchised margins.
