January 29, 2020
Full year results include:
– Systemwide sales surpassed $100 billion*
– Global comparable sales increase of 5.9% – highest in more than 10 years
– Consolidated revenues of $21.1 billion
CHICAGO, Jan. 29, 2020 /PRNewswire/ — McDonald’s Corporation today announced results for the fourth quarter and year ended December 31, 2019.
“2019 marked a year of significant milestones for McDonald’s – including surpassing $100 billion in Systemwide sales and achieving our highest global comparable sales growth in over a decade,” said McDonald’s President and Chief Executive Officer Chris Kempczinski. “Through the execution of our Velocity Growth Plan, we once again served more customers the food they crave, marking three consecutive years of global comparable guest count growth.”
Fourth quarter highlights:
Strong global comparable sales growth of 5.9% demonstrated broad-based strength with increases in the International Operated segment of 6.2%, the U.S. of 5.1%, and the International Developmental Licensed segment of 6.6%.
Consolidated revenues increased 4% (4% in constant currencies).
Systemwide sales increased 6% (7% in constant currencies).
Consolidated operating income increased 15% (16% in constant currencies), reflecting $140 million of prior year impairment charges. Excluding these charges, operating income increased 7% (9% in constant currencies).
Diluted earnings per share of $2.08 increased 14% (15% in constant currencies). Results for the fourth quarter 2019 included $0.11 per share of income tax benefit due to new regulations issued in the fourth quarter 2019 related to the Tax Cuts and Jobs Act of 2017 (“Tax Act”). Excluding this item, diluted earnings per share was $1.97.**
Full year highlights:
Global comparable sales grew 5.9%, reflecting increases in the International Operated segment of 6.1%, the U.S. of 5.0%, and the International Developmental Licensed segment of 7.2%.
Consolidated revenues were relatively flat with the prior year (increased 3% in constant currencies) at $21.1 billion.
Systemwide sales increased 4% (7% in constant currencies) to $100.2 billion.*
Diluted earnings per share of $7.88 increased 5% (7% in constant currencies).**
Cash provided by operations was $8.1 billion and free cash flow was $5.7 billion, a 36% increase over the prior year.
The Company returned $2.3 billion to shareholders through share repurchases and dividends in the fourth quarter and $8.6 billion for the full year, marking successful achievement of the Company’s targeted return of $25 billion for the three-year period ended 2019.
On January 23, 2020, McDonald’s Board of Directors declared a quarterly cash dividend of $1.25 per share of common stock payable on March 16, 2020 to shareholders of record at the close of business on March 2, 2020.
* Refer to page 4 for a definition of Systemwide sales.
** Refer to page 3 for additional details.
“In 2019, we completed our three-year cash return to shareholders target of $25 billion. This was a significant achievement given our substantial investments in Experience of the Future and technology,” said Kevin Ozan, McDonald’s Chief Financial Officer. “Our Velocity Growth Plan helped produce strong operating performance over the past several years, and our underlying financial strength continues to build long-term value for our shareholders. As we begin 2020, we remain committed to our capital allocation philosophy to reinvest in the business to drive profitable growth and return all free cash flow to shareholders through a combination of dividends and share repurchases.”
Kempczinski concluded, “The broad-based momentum around the world continues to demonstrate the strength of the Velocity Growth Plan and the dedication of millions of global crew members executing that plan in McDonald’s restaurants each and every day. As we look to 2020, we will continue to deliver delicious food and optimize our investments as we further transform the experience for our customers through added convenience and digital engagement.”
This press release was published on Supremearticle.com
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