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McDonald’s shares near all-time highs near $300 per share.

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McDonald’s shares are trading nearly 2% higher before the open, near all-time highs near $300 per share. , The company’s results showed that its business is resilient and has grown despite the prospect of a slowdown and more cautious consumers. The earnings season for the U.S. restaurant sector is gaining momentum, with Subway also reporting positive consumer trends and higher sales on Monday. Traffic at McDonald’s restaurants increased despite price increases on the entire menu. Results beat forecasts in both net income and revenue.

  • Revenues: $5.89 billion (4.1% y/y growth) vs. $5.58 billion forecast (1.4% y/y growth)
  • Earnings per share (EPS): $2.45 ( up 15% y/y) vs $2.31 forecasts
  • Comparable sales grew 12.6% in Q1, above estimates of 8.7% growth (Refinitiv) and 11.8% in Q4 2022.

Total margins of the company’s restaurants in the US increased 14% in Q1 2023. Traffic at McDonald’s restaurants increased in the first 14 weeks of 2023 although the fast-food industry experienced traffic declines, according to Place.ai.The company is laying off hundreds of employees in the US and closing some offices. It has already incurred $180 million in restructuring costs.McDonald’s main three business divisions reported a 12.6% increase in same-store sales. All geographic segments of the restaurant chain grew. 

The company raised prices by 10% in 2022 but these are still lower than competitors. This can make the company the preferred consumers choice and increase its market share. Average spending at Mc Donald’s in the U.S., over the past 12 months, was $7.77 – significantly less than at Wendy’s or Burger King outlets according to Numerator data. The same company, in January, indicated that lower-income consumers are choosing McDonald’s more often, while spending less on each visit.

 McDonald’s (MCD.US) chart, D1 interval. The shares will open today at all time high level near 300 USD. Source: xStation5

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