McDonald’s Corporation, started in 1940, is one of the biggest and most famous fast-food chains in the world. With its well-known golden arches, McDonald’s is in over 100 countries and serves millions of customers every day. The company changed the fast-food industry by introducing new ideas like the drive-thru and fast-food assembly line, making service faster and more consistent. Based in Chicago, Illinois, McDonald’s keeps growing around the world while adjusting to local tastes.
Over time, McDonald’s menu has changed to offer a variety of items for different tastes. The company also uses new technology, like mobile ordering and loyalty programs, to make things easier for customers. McDonald’s is committed to being sustainable and helping the community, staying a leader in the fast-food industry and providing a great dining experience for its customers.
McDonalds Fiscal Q1 2025
McDonald (MCD) Q1 2025 results showed a 1% drop in global comparable sales, though sales were steady when adjusting for Leap Day last year.
Revenue came below estimate, and earnings per share (EPS) were $2.60, slightly missing forecasts.
Loyalty members across 60 markets contributed over $31 billion in sales over the past year, with $8 billion in the first quarter.
Highlights:
- Global Comparable Sales: Declined 1%, influenced by the Leap Day comparison.
- U.S.: Down 3.6%
- International Operated Markets: Down 1%
- International Developmental Licensed Markets: Up 3.5%
- Revenue: Consolidated revenue dropped 3%.
- Systemwide Sales: Fell 1% but increased 1% in constant currencies.
- Operating Income: Decreased 3%, including restructuring-related charges. Adjusted operating income fell 2%.
- Earnings Per Share (EPS): EPS was $2.60, a 2% decline. Adjusted EPS was $2.67, down 1%.
Boards Statements
Chairman and CEO Chris Kempczinski highlighted McDonald’s 70-year history of innovation, leadership, and agility, expressing confidence in the company’s ability to navigate challenging market conditions and capture market share.
He noted that while consumers face uncertainty, McDonald’s continues to provide exciting new menu items and beloved classics at great value, earning trust as a brand customers love.
Impact on the Stock Market
McDonald’s Q1 earnings showed a 1% drop in global comparable sales, with revenue of $5.95 billion falling short of the estimate. Adjusted EPS was $2.67, slightly below the forecasts.
Shares declined 1.5% in premarket trading following missed estimates and drops in both revenue and income.
The decline reflects investor concerns over weaker-than-expected revenue and comparable sales, as well as broader economic pressures impacting consumer spending. Despite this, McDonald’s remains optimistic about navigating market challenges and maintaining its competitive edge.
