Andy Wang visits The Watch List with Nicole Petallides sharing his outlook for the fast food giant.

Quick notes:

  • 4Q EPS beat coming in at $2.95 vs consensus expectations of $2.83
  • Revenues missed slightly $6.41B vs 6.45B
  • Global comps below consensus 3.4 vs 4.7
  • McDonald’s has delivered exceptional performance over the past 4 years with strong broad based momentum when compared to 2019. Price increases have driven growth over that period and now comp store growth will likely moderate to normalized levels.
  • Strong brand with size and geographic diversity demonstrates continued innovattion.
  • The McCrispy Sandwich launched in 2022 is now a $1B dollar brand across 30 markets. McDonald’s did $25B in annual system wide sales in chicken.
  • McDonald's limited testing of its CosMc concept, a new small-format, beverage-led business shows promise.
  • Management announced ambitious plans to open 10,000 new restaurants in the next four years.
  • Its loyalty program boasts 150 million active users.
  • Continued war in the Middle East will have negative impact on systemwide sales and revenue.
  • Some customers pushing back on price increases.