McDonalds and other local stores remain closed due to COVID-19 at Times Square on April 13, 2020 in New York, NY.
Eduardo Munoz | beautiful pictures
McDonald’s is expected to report its first-quarter earnings before the bell on Thursday.
Here’s what Wall Street analysts surveyed by Refinitiv are expecting:
- Earnings per share: $2.17 expected
- Revenue: $5.59 billion expected
A year ago, the burger chain was beginning to experience the early days of pandemic closures in the US, so analysts had relatively low expectations for same-store sales growth. domestic variety in this quarter. Wall Street is forecasting similar-store US sales up 3.3%, according to StreetAccount estimates. Last quarter, sales at similar stores in the US rose 7.5%.
In addition to the tough comparisons, McDonald’s and its franchise partners have raised prices in the US as the prices of oil and other commodities soar. The earnings report could include indicators of the fast food giant’s pricing strength, like strong traffic despite rising prices.
Outside of McDonald’s home market, all eyes will likely be on the cost of suspending business in Ukraine and Russia. In March, Chief Financial Officer Kevin Ozan said Suspending its business in Russia will cost the company about $50 million a month, or 5 cents to 6 cents per share. McDonald’s has about 850 locations in Russia, the majority of which are owned by the company, not franchisees.
Shares of McDonald’s are up 6% over the past 12 months, giving them a market value of $193 billion.
