McDonald's Beats Q1 Forecasts on $2.83 EPS, $6.5B Revenue
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- McDonald's posted Q1 adjusted earnings per share of $2.83, topping the $2.74 analyst forecast.
- McDonald's reported revenue of $6.52 billion, exceeding the $6.47 billion expected by analysts.
- McDonald's same‑store sales rose 3.8% in the quarter, aligning with the StreetAccount consensus of 3.7%, with U.S. same‑store sales up 3.9%.
- McDonald's noted that higher gas prices from the U.S. war with Iran are pressuring low‑income consumers, and CEO Chris Kempczinski warned the environment may be getting worse.
- McDonald's said its company‑owned U.S. restaurants, which make up under 5% of its footprint, have weaker margins and may be sold to franchisees.
- McDonald's CFO Ian Borden projected weaker Q2 sales due to tough year‑over‑year comparisons, but affirmed confidence in the “strength of value and affordability.”
Why it matters: The earnings beat gives investors short‑term confidence, but the highlighted pressure on low‑income diners from rising gas prices and the plan to offload weak‑margin company‑owned stores signal a shift toward a more franchise‑heavy model, potentially boosting franchisee profitability while narrowing direct‑ownership risk.
