McDonald's released its quarterly financial results on October 27. Despite an unfavourable macroeconomic environment that caused inevitable price increases and a significant decrease in customers, the company managed to beat Wall Street forecasts. Analysts from New York had predicted that the company's profitability would be $5.69 billion.
However, the most famous fast-food chain reported 5.87 billion. The EPS forecast was $2.58, but the reality was ten cents higher. The first line of the report even states that the company was able to increase sales by 10% globally, which impressed investors. After seeing these numbers, they didn't hesitate to buy, sending the company's stock up 3% above the $260 mark.* Chris Kempczinski, CEO and President of the company mentioned that he is confident in fulfilling the long-term key aspects going forward.
If we were to focus on what has been happening in light of recent events, everyone can probably think of the closely watched McDonald's cooperation with Premek Forejt. The very act of linking Forejt - a famous chef and owner of the first-class Olomouc restaurant Entrée - with the fast-food chain, has sparked a whole lot of speculation and sharp criticism. The situation escalated after the release of an advertisement in which Premek literally plays on food as if it was a musical instrument. The ad spot intensified the controversy and Forejt in particular received a huge wave of criticism. As such, McDonald's surprisingly is a winner in this situation, as the media coverage was extreme thanks to the events surrounding Premek and the reaction to it. It must be added that the whole situation hardly affected the company in terms of results. Firstly, the Czech Republic is a very small country and secondly, people will probably go to McDonald's even if the apocalypse occurs.
McDonald's Corporation's performance over 5 years. Source: tradingview.com
* Past performance is no guarantee of future results.
