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McDonald's misses on revenue, but sales boosted by menu, mobile

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McDonald’s on Thursday posted a fourth quarter profit that fell short of Wall Street expectations, but the fast food giant got a sales boost from the COVID-19 trends of menu innovation, takeout and mobile ordering. Yahoo Finance's Brooke DiPalma joins Zack Guzman to break down McDonald's fourth-quarter earnings report.

Video Transcript



ZACK GUZMA: Welcome back. Earnings season rolling on, and we are seeing McDonald's shares under pressure here after the company missed on top, on its top and bottom lines as the fast-food company continues to deal with changes in the pandemic. For more on that, I want to bring on Yahoo Finance's Brooke DiPalma, who has more details on the McDonald's trade. Brooke.

BROOKE DIPALMA: That's right, Zack. McDonald's posted a miss on both its top and bottom line. Revenue came in at $5.31 billion. That's lower than Wall Street estimates of $5.37 billion. Earnings per share, a similar story there, coming in at $1.70 per share, lower than Wall Street estimates of $1.77 per share.

Now Wall Street analysts also keeping a close eye on same-store sales. They're taking a close look at this across the entire fast-food restaurant industry as consumers begin slowly to head back into the store. Here in the US, those came in higher than expected at 5.5% versus 4.9%. And globally those came in down but higher than expected, down 1.3%.

I also want to note this morning, on the earnings call, CEO Chris Kempczinski noted that franchisees' operating cash flow was up $40,000 in 2020. That's up $100,000 in the past three years. And he said that franchisees will have the liquidity to get through this.

I also do want to note that they are, you know, making headway and making lots of efforts when it comes to digital, drive-through, and delivery, reemphasizing that accelerating the arches. Of course, over the past year, franchisees struggling to stay afloat. And so they hope as $1 billion investment, they'll have consumers not only back into stores but in and out more efficiently. Zack.