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McDonald's beats profit estimates

McDonald's expects to open 1,900 new restaurants in 2023.
McDonald's - unsplash

McDonald's presented its operating results for the fiscal year 2022. The fast-food giant's revenue and profit results beat Wall Street analysts forecasts.

The company recorded its second consecutive quarter of increased traffic in the U.S. market despite an overall negative performance in the fast-food segment. McDonald's again won against Americans' desire to save money and switch to fast food instead of classic restaurants.

McDonald's earnings per share were $2.59 versus a forecast of $2.45. Sales rose to $5.92 billion versus an expected $5.68. The corporation's fourth-quarter net income was $1.9 billion.

In the global market, McDonald's sales increased by 12.6%, thanks to solid demand not only in the U.S. but also in major European markets in Britain, France, and Germany. Revenue also grew significantly in Brazil and Japan but declined in China due to the latest wave of restrictions. Domestic comparable restaurant sales were up 10.3%, compared with analysts' expectations for growth of 8.1%.

McDonald's expects to open 1,900 new restaurants in 2023, including 400 corporate restaurants in the United States and other countries. Compared to 2022, the growth rate of the chain will be increased by 100 restaurants. The company also said it plans to spend $2.2 billion to $2.4 billion on capital spending.

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