McDonald’s is set to report first-quarter earnings before the bell on Monday, just a little over a year after launching massive growth plan that included expanding increasing the use of technology in its restaurants.
The burger giant is expected to report earnings of $1.67 per share on $4.98 billion in revenue, according to Thomson Reuters estimates.
Here’s what Wall Street expects:
- Earnings: $1.67 per share, according to Thomson Reuters
- Revenue: $4.98 billion, according to Thomson Reuters
- Same-store sales: 2.9 percent increase in the U.S., according to StreetAccount
Last quarter, McDonald’s posted its best same-store sales growth in six years fueled by promotions and new menu items.
On Monday, analysts expect same-store sales growth to have risen 2.9 percent in the U.S., according to StreetAccount.
Investors will be keen to see if deals, including the new $1 $2 $3 Dollar Menu, which launched at the start year, have bolstered sales in the U.S. A number of franchisees raised red flags last quarter, saying they expected the Dollar Menu and other promotions to drive checks lower and reduce their ability to control menu prices.
In addition the $1 $2 $3 Dollar Menu, McDonald’s also offered soft drinks for $1, McCafe beverages for $2, and a McPick 2 promotion, which allows customers to a mix-and-match two menu items for $5.
It’s been more than a year since the company’s executives touted several big changes that the chain would be making to win back the more than 500 million visits it lost since 2012. This included innovating its menu, renovating its stores, offering mobile and kiosk ordering and partnering with UberEats to test delivery.
In the last quarter, Chief Financial Officer Kevin Ozan said the company planned to invest $2.4 billion of capital in 2018 toward its store renovations, which feature a modern design, kiosks and table service. Ozan said McDonald’s planned to open 1,000 new stores and bring its total number of renovated restaurants to 4,000.
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