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In a press release dated April 30th McDonald’s Corporation (MCD) announced results for the 1st Quarter ending March 31 st. As with all QSRs March was impacted by COVID-19 worldwide.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
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Chris Kempczinski CEO McDonald's Corp
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1st Quarter Ending March 31st
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2020
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2019
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Difference (%)
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Revenue:
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$4,714,400
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$5,024,100
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-6.2
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Gross profit company stores:
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$273,000
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$355,000
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-23.1
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Operating income:
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$1,693,600
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$2,094,000
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-19.1
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Pre-tax Income
Net Income
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$1,444,900
$1,106,900
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$1,831,300
$1,328,400
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-21.1
-16.6
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Diluted earnings per share:
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$1.47
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$1.72
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-14.5
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Gross Margin company stores (%)
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13.5
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15.8
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-14.6
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Operating Margin (%)
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35.9
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41.6
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-13.7
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Profit Margin (%)
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23.4
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26.4
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-11.4
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Long-term Debt and lease obligations:1
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$46,875,000
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$31,075,000
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+50.8
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12 Months Trailing:
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Return on Assets (%)
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13.8
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Return on Equity (%)
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N/A
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Operating Margin (%)
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42.2
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Profit Margin (%)
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28.6
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Total Assets1
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$47,510,500
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$32,811,200
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+44.8
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Market Capitalization
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$139,480,000
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Note 1. December 31st. 2019/2018
2-Week Range in Share Price: $124.23 to $221.93 50-day Moving average $170.49
Market Open April 30th $182.84 Close $187.99 post-release
Forward P/E 28.4 Beta 0.6
Comparative same-store global sales were down 3.4 percent. 75 percent of stores world-wide are operating with take-out, drive-through and delivery.
Commenting on Q1 Chris Kempczinski, president and CEO stated "following our strong performance in 2019, McDonald’s began 2020 with exceptional global momentum, and our January and February sales were reflective of that trend. Since then, the global crisis caused by the COVID-19 pandemic has significantly disrupted our business, and we continue to operate in a very challenging and unpredictable environment,” He added “McDonald's has seen a lot over our 65 years and I'm confident that the actions we're taking will enable us to emerge from this crisis in a position of competitive strength. The determination and team spirit across the McDonald's System is evident as we continue to offer affordable, convenient food while at the same time providing for the safety of our crew and customers and continuing our legacy of supporting local communities in which we operate."