McDonald’s Reports Third Quarter 2024 Results: Key Financials and Market Impact

McDonald's Corporation reported its third-quarter 2024 financial results on October 29, 2024, highlighting several key metrics. The company achieved consolidated revenues of $6.9 billion, marking a 3% increase (or 2% in constant currencies) compared to the same period last year.

Global comparable sales decreased by 1.5%, with U.S. sales showing a modest increase of 0.3%. However, International Operated Markets saw a decline of 2.1%, and International Developmental Licensed Markets experienced a more significant drop of 3.5%.

The diluted earnings per share stood at $3.13, representing a 1% decrease from the previous year. Despite this, the company announced a 6% increase in the quarterly dividend to $1.77 per share.

McDonald’s loyalty program continued to perform well, with systemwide sales to loyalty members across approximately 50 markets reaching over $28 billion in the trailing twelve months and nearly $8 billion for the quarter.

The recent financial report comes amid other challenges, including an E.Coli outbreak that has impacted the company’s sales. This outbreak, which resulted in one death and 75 infections, led to a decline in McDonald’s stock price and prompted analysts to downgrade their ratings. David Tarantino from Robert W. Baird and Gregory Frankfort from Guggenheim downgraded their ratings to “Neutral” with revised price targets.

Despite these challenges, McDonald’s stock has shown some resilience. The stock price has increased by 1.76% in the past 24 hours, though it remains below the psychologically significant $300 mark.