McDonald's Corporation announced its international results for the first quarter ended March 31, 2024.
"Our global comparable sales growth in the first quarter marks 13 consecutive quarters of positive comparable sales growth with 30 percent growth over the last four years," said CEO Chris Kempczinski.
"As consumers are more discriminating with every dollar that they spend, we will continue to earn their visits by delivering leading, reliable, everyday value and outstanding execution in our restaurants. As we look to the rest of 2024 and beyond, we remain focused on leveraging the competitive advantages within our Accelerating the Arches plan and growing QSR market share to drive long-term growth."
Global comparable sales increased by 1.9 percent, reflecting positive comparable sales in the U.S. and International Operated Markets segment. Comparable sales in the International Developmental Licensed Markets segment were slightly negative as the segment continued to be impacted by the war in the Middle East. The U.S. market increased by 2.5 percent, whilst international operated markets segment increased by 2.7 percent. International development licensed markets segment decreased by 0.2 percent, and consolidated revenues increased by five percent (four percent ins constant currencies). Systemwide sales increased three percent (three percent in constant currencies).
Consolidated operating income increased eight percent (eight percent in constant currencies). Results reflected pre-tax charges of $35 million and $180 million for the current year and prior year, respectively, primarily related to restructuring charges associated with Accelerating the Organisation. Excluding these current and prior year charges, consolidated operating income increased two percent (two percent in constant currencies).
Diluted earnings per share was $2.66, an increase of nine percent (nine percent in constant currencies). Excluding the current year charges described above of $0.04 per share, diluted earnings per share was $2.70, an increase of two percent (two percent in constant currencies) when also excluding prior year charges.
U.S.: Comparable sales results benefited from average check growth driven by strategic menu price increases. Successful restaurant level execution, effective marketing campaigns featuring the core menu and continued digital and delivery growth contributed to positive comparable sales results.
International Operated Markets: Segment performance was driven by positive comparable sales in most markets, led by the U.K. and Germany, partly offset by negative comparable sales in France.
International Developmental Licensed Markets: The continued impact of the war in the Middle East more than offset positive comparable sales in Japan, Latin America and Europe.
To read more international QSR news, click here.
