McDonald’s (NYSE: MCD) just released its latest earnings report, and while the numbers weren’t exactly stellar, its stock still jumped over 4%.
Investors seem optimistic despite weak U.S. sales—so what’s really happening with McDonald’s stock, and what should investors know?
McDonald’s Q4 2024 Earnings: The Good, the Bad, and the Unexpected
The fast-food giant posted revenue of $6.39 billion, slightly missing analysts’ expectations of $6.44 billion. U.S. same-store sales took a hit, dropping 1.4%, while Wall Street only expected a 0.6% decline. The biggest blow came from an E. coli outbreak tied to its Quarter Pounders, which hurt consumer confidence.
Why Is McDonald’s Stock Up?
Despite the bad news, McDonald’s stock jumped over 4% in morning trading. Why? Here’s what’s driving investor confidence:
- Sales Recovery on the Horizon: McDonald’s expects U.S. sales to rebound in Q2 as the E. coli scare fades.
- New Menu Items: The company is bringing back snack wraps and introducing new chicken strips to boost revenue.
- International Growth: Sales outside the U.S. performed well, with same-store sales rising 4.1% in Asia and the Middle East.
- Expansion Plans: McDonald’s plans to open 2,200 new locations in 2025, including 1,000 in China.
Investor Takeaway: Should You Buy MCD Stock?
While short-term challenges exist, McDonald’s long-term strategy remains strong. If you’re looking for a defensive stock with global reach, MCD’s expansion efforts and menu revamps could make it a solid buy for 2025.
For more details, check out the full earnings report on CNBC.
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