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McDonald’s Corporation Reports on Q2 of FY 2022

07/26/2022

In a release dated July 26th McDonald’s Corporation reported results for the 2nd quarter ended June 30th 2022. For the period, the Company earned $1,118 million on total revenue of $5,718 million with a diluted EPS of $1.60.  Comparable figures for Q2 of fiscal 2021 were net income of $2,219 million on total revenue of $5,888 million with a diluted EPS of $2.95. Q2 2022 results include a $1,200 million charge against disposal of assets in the Russian Federation, offset by sale of Dynamic Yield, generating $271 million and $98 million from sale of stock in operations in Japan. Operating margin declined from 45.7 percent in Q2 2021 to 29.9 percent for the most recent quarter.

 

In commenting on results, Chris Kempczinski, president and CEO stated, “The McDonald’s System continues to demonstrate strength and resiliency and our second quarter performance reflects outstanding execution against our Accelerating the Arches strategy. By focusing on our customers and crew, enabled by a rapidly growing digital capability, we delivered global comparable sales growth of nearly 10%. Nonetheless, the operating environment across the competitive landscape remains challenging.” He concluded “While we are planning for a wide range of scenarios, I am confident that our plans and people position McDonald’s to weather this environment better than others.”

 

For the 2nd quarter of 2022, McDonald’s posted comparable sales growth for the U.S. of 3.7 percent compared by sales growth for the international segments of 14.5 with global sales growth of 9.7 percent.

 

Projections for 2022 in the SEC 8K report included net restaurant expansion of 1.5 percent with an operating margin of 40 percent  

 

McDonald’s Corporation had a market capitalization of $187.8 billion on July 26th.  Total assets on December 31st 2021 amounted to $53,854 million of which 30.3 percent was represented by goodwill and intangibles.  Long-term debt and lease obligation were $48,643 million. MCD has fluctuated over a 52-week range of $217.68 to $271.15 with a 50-day moving average of $246.23. MCD trades with a forward P/E ratio of 25.9.  The 12-month trailing operating margin was 42.7 percent and profit margin 29.9 percent.  The company posted a return on assets of 12.4 percent.  Prior to release MCD closed on July 25th at $250.38 but opened higher post-release on Tuesday 26th and up 3.1 percent to $258.14 at 14H00.