McDonald’s reports US$2.02B Q4 net income, down 1% on constant currency basis

GLOBAL – The world’s largest QSR operator McDonald’s reported a Q4 2024 net income of US$2.02 billion, marking a 1% decline on a constant currency basis compared to the same period last year.

Total revenues for the fourth quarter ending December 31, 2024, reached US$6.38 billion, slightly lower than the US$6.40 billion reported in Q4 2023.

Diluted earnings per share (EPS) remained steady at US$2.80, unchanged from the previous year. Operating income increased by 2% year-on-year to US$2.87 billion.

Global comparable sales for Q4 2024 rose by 0.4%. Sales in the US declined by 1.4%, while the international operated markets segment registered a marginal 0.1% increase.

Positive comparable sales in most regions were partially offset by declines in certain markets, particularly the UK.

Meanwhile, the international developmental licensed markets segment recorded a 4.1% growth, driven primarily by Japan and the Middle East.

The decline in US comparable sales was attributed to cautious consumer spending and an E. coli outbreak in October 2024, as reported by Reuters.

This represented the most significant drop since the COVID-19 pandemic, when restaurants had limited operations to drive-through and delivery.

In response, the company extended its US$5 meal deal, initially introduced in June 2024, until December. Additionally, the Chicken Big Mac and other special menu items were launched in October.

However, customer traffic weakened following the outbreak, which led to a temporary suspension of Quarter Pounder sales at approximately 20% of the chain’s 14,000 US locations.

For the full year 2024, net income fell by 3% to US$8.22 billion. Diluted EPS declined to US$11.39 from US$11.56 in 2023.

Total revenues dropped by 2% to US$25.9 billion, while operating income saw a modest 1% increase to US$11.7 billion.

Global comparable sales for the year dipped by 0.1%, with a 0.2% growth in the US segment offset by a 0.2% decline in international operated markets and a 0.3% decrease in international developmental licensed markets.

By the end of 2024, McDonald’s reported more than 175 million active users across 60 loyalty markets, reflecting a 15% growth over the previous year.

Chairman and CEO Chris Kempczinski emphasized that the “Accelerating the Arches” strategy remains effective in expanding market share, stating that the company remains focused on delivering strong value, innovative menu offerings, and culturally relevant marketing.

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.