The world’s largest snack corporation worth $88 billion is set to see earnings fall for the first time since 2002.
As predictions were made on Tuesday for today’s earnings report for McDonald’s, share price fell to 89.35 and yet today, even as analysts stick to their expectations of decline, shares have seen a slight boost back to 90.74.
Sales for McDonald’s worldwide have not been helped by the Asian meat scandal, nor have the sanctions against Russia helped the firm as Russia called for McDonald’s to leave the country. To date sales are down 5% over the last 3 quarters of 2014 and predictions see a further decline predicting earnings per share down to $1.24 from $1.40 on the previous quarter.
Forecast Fourth-quarter earnings: Profit of $1.21 billion, or earnings per share of $1.24, on revenue of $6.7 billion (Thomson Reuters)
Forecast for full year: $4.89 billion in net profit, a 12.7% decline from 2013’s $5.59 billion, revenue at $27.58 billion, a 1.9% drop from $28.11 billion the previous year. (Thomson Reuters)
Previous quarter: Profit of $1.4 billion, or earnings per share of $1.40, on revenue of $7.09 billion a year ago
McDonald’s Earnings are released at 10:00am Central Time or 4.00pm GMT Friday 23 January 2015.
MT4 chart: McDonald’s
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