McDonald’s Corporation (NYSE:MCD) is scheduled to announce its Q4 earnings on January 23, 2013.
The stock has had a bumpy 2012, going as high as $101 in the initial part of the year before retreating to $84 in November.
The company has struggled to post the desired same-store sales in the second half of 2012, but the figure turned red for the first time in nine years in October.
Things improved in November with same-store sales rising 2.4%.  McDonald’s will announce the December sales growth in its upcoming earnings.
Same-store sales growth is an important parameter to gauge a restaurant chain’s performance since it only includes restaurants open for more than a year. The sales of newly opened restaurants are unusually high or low and can distort the overall revenue/store figure.
Margins Under Pressure
In this quarter, gross margins will be under pressure since the company expects the commodity inflation to be in the region of 3.5% to 4.5% in the U.S. and around 2.5-3.5% in Europe. Food expenses account for roughly one-third of the sales.
McDonald’s expects commodity inflation to ease next year so margins could stabilize going forward if this is true.  The U.S. margins might also be impacted this quarter by higher labor expenses due to the 2011 HIRE Act payroll tax credit...
more, including charts
Source: Argentine Beef Packers S.A.
Back to News Headlines