Investing.com — McDonald’s Corporation reported fourth-quarter revenue that exceeded analyst expectations, driven by strong comparable sales growth across all segments, as the burger chain focuses on promotions and discounts to entice cost-conscious customers.
Shares of the fast-food giant, which has rolled out meal deals during a time when many low-income eaters have been grappling with elevated living costs, dipped marginally in premarket U.S. trading on Thursday.
The company reported fourth quarter revenue of $7.01 billion, surpassing the consensus estimate of $6.81 billion, while adjusted earnings per share came in at $3.03, matching analyst expectations. Global comparable sales increased 5.7% in the quarter, significantly outpacing analysts’ average estimate of 3.7%.
U.S. comparable sales rose 6.8%, reversing the 1.4% decline seen in the same quarter last year. The company attributed this growth to “positive check and guest count growth primarily from successful marketing promotions.”
“McDonald’s value leadership is working,” said Chairman and CEO Chris Kempczinski. “By listening to customers and taking action, we have improved traffic […]. That focus helped increase global systemwide sales by 8% and delivered strong comp sales growth across all segments this quarter.”
International markets also performed well, with International Operated Markets increasing 5.2%, led by strong results in the U.K., Germany and Australia. International Developmental Licensed Markets saw a 4.5% increase, with Japan leading the growth.
For the full year, McDonald’s reported global systemwide sales growth of 7% to over $139 billion. The company’s loyalty program continued to gain traction, with systemwide sales to loyalty members increasing 20% to nearly $37 billion, and 90-day active loyalty users up 19% to nearly 210 million by year-end.
“U.S. value efforts are resonating — with McDonald’s lower-income customer market share and affordability scores both improving in the fourth quarter,” analysts at Gordon Haskett Research Advisors said in a note.
McDonald’s also announced a 5% increase in its quarterly cash dividend to $1.86 per share.
Luke Juricic contributed reporting.