Can McDonald’s figures maintain momentum?

McDonald’s will update the market with its fourth-quarter figures on Thursday 24 January.

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. 

McDonald's Corp chart

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