Despite an increase in comparable store sales in the United States, the Chicago-based company’s revenues for the quarter fell by 1% to $5.93 billion, which it attributed to the impact of several major currencies weakening against the dollar. Due to the fact that severe COVID-19 regulations in China had not yet been relaxed for the majority of the quarter, sales there also decreased.In addition to charges associated with the sale of its Russian operations and the temporary shutdown of outlets in Ukraine following the commencement of the war, McDonald’s claimed that it was also facing challenges from rising inflation.
Source: CNBC Television Because of this, operating margin for the three months ending on December 31 was 43.6%, which was lower than 45.45% Bloomberg consensus projections.McDonald’s projected operating margin to be 45% in 2023, falling short of analysts’ expectations of 46.5%. Chris Kempczinski, the chief executive officer, issued a statement warning that he anticipates short-term inflationary pressures to persist in 2023 and that recently elevated borrowing costs will increase interest costs by 10% to 12%.Share your thoughts with us in the comments.
