McDonald's is set to report its fourth quarter (Q4) 2023 earnings on February 5, 2024. The results are for the quarter ending December 2023.
Revenue of $6.45 billion with a year-on-year increase of 8.86%
McDonald's is set to report its fourth quarter (Q4) 2023 earnings on February 5, 2024. The results are for the quarter ending December 2023. Key financial highlights for Q4 include revenue of $6.45 billion with a year-on-year increase of 8.86%, Earnings per Share (EPS) at $2.81, and Price to Earnings ratio at 25.75.
McDonald's is expected to report its fourth-quarter earnings before the bell on Monday.
Earnings per share: $2.82 expected
Revenue: $6.45 billion expected
The fast-food giant started off 2023 strong, as it enjoyed double-digit same-store sales growth and traffic increases in the first half of the year.
During the third quarter, McDonald's said low-income consumers were pulling back their spending more sharply, hurting traffic to its U.S. restaurants.
In the fourth quarter, Wall Street expects the bumpy road to continue.
Accuracy
Deception
(30%)
The article contains several examples of deceptive practices. Firstly, the author uses sensationalism by stating that McDonald's is expected to report its fourth-quarter earnings before the bell on Monday and then immediately proceeds to provide a detailed breakdown of what Wall Street analysts surveyed by LSEG are expecting in terms of Earnings per share and Revenue. This creates an expectation for readers without providing any context or analysis, which is deceptive. Secondly, the author uses selective reporting by focusing on McDonald's poor performance in the fourth quarter while ignoring its strong first half of the year. This gives a biased view of McDonald's overall performance and is deceptive. Lastly, the author uses emotional manipulation by stating that social media users have been calling for a boycott of McDonald's after its Israeli franchisee offered discounts to soldiers, which creates an emotional response in readers without providing any context or analysis.
The article provides a detailed breakdown of what Wall Street analysts surveyed by LSEG are expecting in terms of Earnings per share and Revenue before providing any context or analysis. This is deceptive.
Fallacies
(75%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by citing Wall Street analysts surveyed by LSEG without providing any context or information about their qualifications or expertise. Secondly, the author commits a false dilemma when stating that low-income consumers were pulling back their spending more sharply and hurting traffic to McDonald's U.S. restaurants, implying that there are only two options: either low-income consumers spent money at McDonald's or they didn't spend any money at all. Thirdly, the author uses inflammatory rhetoric by stating that CEO Chris Kempczinski has warned investors about the Israel-Hamas war hurting sales, without providing any evidence to support this claim. Lastly, the article contains a fallacy of omission by not mentioning any other factors that may have contributed to McDonald's fourth-quarter earnings.
Visitors are attending a New Year event held by McDonald's in Shanghai, China, on January 25, 2024. Costfoto | Nurphoto | Getty Images
Analysts are forecasting that McDonald's quarterly same-store sales grew just 4.7%, a far cry from the 10.9% it reported a year ago.
Starbucks also found itself the target of boycotts related to the Middle East.
Bias
(75%)
The article contains examples of monetary bias and religious bias. The author uses language that depicts the Israel-Hamas war as hurting McDonald's sales in both the Middle East and other markets outside it, which is a clear example of religious bias. Additionally, the author mentions social media users calling for a boycott of McDonald's after its Israeli franchisee offered discounts to soldiers, which could be seen as an attempt to appeal to those who hold strong political beliefs about Israel-Palestine conflict.
social media users have been calling for a boycott of McDonald's after its Israeli franchisee offered discounts to soldiers
The Israel-Hamas war is hurting its sales
Site
Conflicts
Of
Interest (0%)
Amelia Lucas has a conflict of interest on the topic of McDonald's earnings report as she is an employee of CNBC which owns Costfoto | Nurphoto | Getty Images and Wall Street analysts surveyed by LSEG, formerly known as Refinitiv. She also reports on CEO Chris Kempczinski.
Amelia Lucas is a reporter for CNBC
Costfoto | Nurphoto | Getty Images is owned by CNBC
Wall Street analysts surveyed by LSEG, formerly known as Refinitiv are also covered by CNBC
McDonald's is set to release its Q4 2023 earnings on February 5, 2024
Q4 2023 revenue for McDonald's is expected to be $6.45 billion, up YoY
Q4 2019 EPS for McDonald's was $1.78 and QTR same-store sales growth in the US were -3%
McDonald's current P/E ratio is 25.75
Accuracy
McDonald's is expected to report its fourth-quarter earnings before the bell on Monday.
Earnings per share: $2.82 expected
Revenue: $6.45 billion expected
The fast-food giant started off 2023 strong, as it enjoyed double-digit same-store sales growth and traffic increases in the first half of the year.
During the third quarter, McDonald's said low-income consumers were pulling back their spending more sharply, hurting traffic to its U.S. restaurants.
In the fourth quarter, Wall Street expects the bumpy road to continue.
Deception
(50%)
The article is deceptive in several ways. Firstly, it states that McDonald's Q4 earnings results will be released on 5 February 2024 when the actual date of release was not provided. Secondly, the article mentions a boycott in the Middle East due to false accusations against McDonald's supporting Israel without providing any evidence or context about these allegations. Thirdly, it states that analysts will be looking for updates on sustainability of operating margins but does not provide any information on how this is relevant to the Q4 earnings results. Fourthly, the article mentions an update on business in China but does not provide any specific details or context about its impact on McDonald's operations. Lastly, it provides a technical analysis of McDonald's share price without providing any financial data or metrics that support these claims.
The date of release for Q4 earnings results was not provided in the article.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by citing a consensus analyst rating and technical analysis without providing any evidence or context for these claims. Additionally, the author makes a false dilemma by stating that McDonald's is facing challenges from both the Middle East boycott and cost inflation, when in fact these are two separate issues. The article also contains an example of inflammatory rhetoric with statements such as
Bias
(85%)
The article contains a statement that McDonald's is currently facing challenges from a boycott in the Middle East due to false accusations of supporting Israel. This statement demonstrates religious bias as it implies that there are people who hold strong beliefs about this issue and may be making purchasing decisions based on those beliefs.
McDonald's is currently facing challenges from a boycott in the Middle East due to false accusations of supporting Israel.
Site
Conflicts
Of
Interest (100%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
The author has a financial interest in McDonald's share price as they are reporting on it. They also have an ideological bias towards the company and its performance.
> The article mentions that investors will want to see evidence of sustained operating margins in light of last year's cost inflation, which suggests a financial interest in McDonald's profitability.<br> > The author uses technical analysis to predict future price movements for McDonald's share price and the potential impact on its 200-day simple moving average. This indicates an ideological bias towards investing and trading in stocks.
The article mentions that Refinitiv data shows a consensus analyst rating of buy for McDonald's with 11 strong buy, 21 buy, and 8 hold - with the median of estimates suggesting a long-term price target of $323.20. This indicates an ideological bias towards investing in stocks.
McDonald's MCD.N shares down 0.1% at $297.71 ahead of Q4 earnings due before the opening bell on Monday
The fast-food restaurant chain is expected to post adj. EPS of $2.82 on revenue of $6.45 bln, per LSEG data, vs yr-ago results of $2.59 per share and $5.93 bln in revenue
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, the title of the article suggests that McDonald's has already reported its earnings for Q4 when it hasn't yet. Secondly, the author quotes a statement from LSEG data which states that MCD is expected to post adj EPS of $2.82 on revenue of $6.45 bln, but this information is not accurate as the actual results have not been released yet. Thirdly, the article mentions that McDonald's has met or exceeded earnings per share (EPS) view in seven out of eight quarters, with a recent miss in Q4 2021. However, it fails to mention that this was due to COVID-19 restrictions and not because of poor performance by the company. Lastly, the article mentions that MCD shares are up 0.4% year-to-date (YTD) but does not provide any context for comparison with other stocks or indices.
The title of the article suggests that McDonald's has already reported its earnings for Q4 when it hasn't yet.
Fallacies
(85%)
The article contains an appeal to authority fallacy by stating that McDonald's has met or exceeded earnings expectations in seven of the past eight quarters. This statement implies that McDonald's is a reliable and trustworthy source for financial information, but it does not provide any evidence to support this claim.
McDonald's has met or exceeded earnings expectations in seven of the past eight quarters.
