Why McDonald’s shares jump today

McDonald’s (NYSE: MCD) The stocks get a floor in the trading of the two. The price of the fast food giant increased by 4.5 % until noon S & P 500 (Snpindex: ^Gspc) And earn 1.1 % for Nasdak (Nasdaqindex: ^IXIC).

McDonald’s reported the results of the fourth quarter before the opening of the market this morning, and the performance of sales and profits for this period has already come in expectations. But despite the loss of Wall Street’s upper goals and bottom, businesses have shown signs of improvement in the main areas-and management defines strategies that investors feel up to routs.

In the fourth quarter of last year, McDonald’s was published Unprepared (Acceptable Principles of Accounting in general) Modifying profits for $ 2.83 on sales of $ 6.39 billion. For comparison, the average analyst for publication called for publication of the modified profits of the share of $ 2.86 on revenues of $ 6.48 billion. Total revenue decreased by 0.3 % year on an annual basis in this period, and the profits of one share decreased by 4 %.

Despite the decrease in sales, investors find some bright points in the formation of revenue. While sales of the same stores in the United States decreased by 1.4 % compared to the previous year due to a decrease in spending for each check, sales for the international markets sector that are operating have already increased by 0.1 %-which is much better than a decrease of approximately 1.1 % expected by Wall Street . Meanwhile, the revenues of the licensed markets sector in international development increased by 4.1 % on an annual basis – much better than a decrease of almost 0.4 % through the average Wall Street estimate.

While McDonald’s witnessed some ongoing challenges related to the E. Coli’s outbreak last year, the administration expects that these problems will be in the back vision mirror by the second quarter. As a result, the profitability is expected to see a great improvement.

McDonald’s says it will continue to focus on building the digital demand platform and setting the list of the list directed towards the value. On the other hand, the company says it is already witnessing improvements to medium examination amounts, customer movement in the United States and other markets.

The company expects the impact of menu and digital initiatives and improves trends for checks and customer movement will achieve improvements in the results that really begin to appear in the second quarter. With McDonald shares increased by only 6 % during the past year, despite the 21 % gathering of the S&P 500 index, the company’s share price can have an area to operate if the trends are in line with management expectations.

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