The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
The last set of quarterly figures posted by McDonald's showed improvements in revenue figures, up 14% year-on-year to $7.16 billion. In this week’s fourth-quarter figures we should see further growth, generated by a broader product range and marketing initiatives.
The market will be looking for an EPS of 1.287, with quarterly revenue of 6.864 billion and an operating profit of $2.188 billion. Currently the dividend yield on the shares is 3.34%. With the share price bubbling along just below the psychological $100 level, the market cap of this global discount-food retailer is $94.46 billion.
The shares started off 2013 with an impressive first quarter, in which they jumped 15.8%, but then proceeded to drift as the year wore on. We are not expecting the first quarter of this year to match the gains seen in the same period last year.
Like many retailers, McDonald’s is focusing on the Asian markets. Over 60% of its new global outlets due to open in 2014 will be in this region. Current initiatives include an improved menu and the return of the Monopoly game, aimed at driving increased consumer loyalty.
If Thursday’s figures are strong enough to hold the shares above $94.50, we could see some short-term momentum to the upside.