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McDonald’s revenue tops estimates, fueled by price hikes and overseas same-store sales growth


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McDonalds and other local stores remain shuttered due to COVID-19 at Times Square on April 13, 2020 in New York, NY.
Eduardo Munoz | Getty Images

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 expectedRevenue: $5.59 billion expected

A year ago, the burger chain was beginning to lap the early days of pandemic lockdowns in the U.S., so analysts have relatively low expectations for domestic same-store sales growth this quarter. Wall Street is forecasting U.S. same-store sales increased by 3.3%, according to StreetAccount estimates. Last quarter, U.S. same-store sales climbed 7.5%.

On top of tough comparisons, McDonald’s and its franchisees have been raising prices in the U.S. as oil and other commodity costs soar. The earnings report could include indicators of the fast-food giant’s pricing power, like strong traffic numbers despite the price hikes.

Outside of McDonald’s home market, all attention will likely be on the cost of suspending business in Ukraine and Russia. In March, CFO Kevin Ozan said suspending its Russian business will cost the company an estimated $50 million per 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 last 12 months, giving it a market value of $193 billion.

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