McDonald’s (NYSE: MCD) missed analysts’ earnings expectations as increasing costs impacted profits. This is the fast-food company’s fourth earnings miss throughout the past eight quarters. Shares fell 1% during morning trading amid the news.
The restaurant chain reported earnings of USD2.23 per share, compared to the expected USD2.34. Revenue amounted to USD6.01 Billion, lower than analysts anticipated USD6.03 Billion.
“While 2021 was a year of continued challenges around the world, the McDonald’s System came together with unparalleled dedication and delivered truly exceptional performance,” said McDonald’s President and Chief Executive Officer, Chris Kempczinski. “We enter this new year with a clear focus on creating seamless and memorable customer experiences and harnessing our momentum to drive long-term, sustainable growth for all of our stakeholders.”
Nevertheless, the chain has a new growth strategy including the three D’s: digital, delivery, and drive-thru, which has uplifted sales throughout the pandemic. McDonald’s has also cited that customers had been putting in larger orders, despite rising inflation. Furthermore, the company says that “strong menu and marketing promotions,” such as the comeback of the McRib and crispy chicken sandwich, have helped boost sales.
In 2022 the company forecasts it will spend USD2.2 Billion to USD2.4 Billion on capital expenditures. Approximately half of that amount will be used to open over 1,400 new restaurants, which are set to add 1.5% to its system-wide sales in 2022.