McDonald’s earnings miss estimates as rising costs weigh on profits

Earnings

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Signage outside a McDonald’s Corp. fast food restaurant in Louisville, Kentucky, U.S., on Friday, Oct. 22, 2021.
Luke Sharrett | Bloomberg | Getty Images

McDonald’s is expected to report its fourth-quarter earnings before the bell Thursday.

Here’s what Wall Street analysts surveyed by Refinitiv are expecting:

  • Earnings per share: $2.34 expected
  • Revenue: $6.03 billion

The fast-food giant has been soundly squashing its rivals in recent quarters, and Wall Street is predicting similar results this time around, too. Analysts are expecting U.S. same-store sales growth of 6.9%, according to StreetAccount estimates.

But the burger chain is facing a number of challenges as it heads into 2022. Staffing shortages, food inflation and the omicron variant have hit the restaurant industry at large. And some of its international markets have imposed vaccination mandates that could make consumers less likely to visit. However, Wall Street is confident that McDonald’s is positioned well despite those potential obstacles.

The company is also expected to release its 2022 outlook on Thursday. Wall Street is forecasting earnings of $10.15 per share and revenue of $24.74 billion.

Shares of McDonald’s have climbed 20% in the last 12 months, bringing its market value to $193 billion.

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