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McDonald’s Earnings: Here is What You Need to Know

McDonald's EarningsFrom Oak Brook, Ill., early Monday came the quarterly report from McDonald’s (NYSE:MCD), which sent the pre-market stock price down because the company reported an EPS of $1/32 that missed estimates by 6 cents, and revenue of $6.92 billion missed the target by $20 million. As a result, shares of MCD stock were down nearly 1.2 percent before the opening bell to about $91.60.

Accounting for a 5-percentage-point negative impact due to currency exchange, the company actually reported increases across the board compared to the same period in 2011. Global sales were reported up 3.7 percent in constant dollars, while revernue was up 5 percent. Operating income of $2.2 billion was up 2 percent over a year ago, and the reported EPS was actually up 3 percent in constant dollars, instead of a raw 2-percent decline. The company also reported $1.6 billion in stock repurchase and dividend distributions in the quarter.

“McDonald’s global comparable sales remained solid for the quarter while overall results reflected the slowing global economy, persistent economic headwinds and the investments we’ve made to enhance restaurant operations and provide customers the everyday value they have come to expect from McDonald’s,” said CEO Don Thompson. “Our System alignment and ongoing commitment to our global priorities of optimizing our menu, modernizing the customer experience and broadening accessibility to our brand will help us navigate the current environment as we continue to build our business and our brand. As we begin the third quarter, global comparable sales for July are expected to be positive, but less than second quarter.”

The news was not considered positive, which likely affects hedge funds like Jim Simons’ Renaissance Technologies and D E Shaw – both f which were bullish on MCD stock the last time we saw their SEC reports. At the end of March, Renaissance had increased its stock hold by 112 percent to a value of $465 million, while D E Shaw upped its stock stake by 560 percent to nearly $274 million.

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