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McDonald’s Fourth-Quarter Same-Store Sales Growth

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Jan. 31 2019, Updated 2:30 p.m. ET

Fourth-quarter performance

In the fourth quarter, McDonald’s (MCD) posted global SSSG (same-store sales growth) of 4.4%, which beat analysts’ expectation of 3.9%. The company posted positive SSSG across all four segments.

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SSSG across McDonald’s segments

During the quarter, McDonald’s SSSG in the US segment rose 2.3%, which fell short of analysts’ expectation of 2.4%. The segment’s SSSG was driven by the higher average check size due to an increase in menu prices and a favorable mix. Glazed tenders, triple breakfast stack sandwiches, fresh beef quarter pound burgers, and value offerings like the four for $6 classic meal deal drove the segment’s check size during the quarter. Expanding the delivery service and deploying EOTF (Experience of the Future) facilities to more restaurants also drove the segment’s SSSG.

The international lead markets segment posted an SSSG of 5.2%. The segment had strong performances from the United Kingdom, Germany, and Australia. The segment’s SSSG was driven by menu innovations, growth in delivery sales, and customers’ enhanced experience with the deployment of EOTF at more restaurants.

The high-growth markets segment posted an SSSG of 4.8% with positive SSSG across the region. During the quarter, Italy, the Netherlands, and Poland posted double-digit SSSG.

The foundational markets segment’s SSSG was 7.1%. The segment had positive SSSG across all of the regions led by Japan.

Peer comparison

During the same period, Starbucks (SBUX) posted global SSSG of 4.0%. Next, we’ll discuss McDonald’s EBIT margins.

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