Today I would like to give you an insight into the analyst conference of $MCD (+0,02 %) (McDonald's) analyst conference that took place following the fourth quarter and full year 2024 earnings announcement today. It was an interesting discussion that highlighted some key points and future strategies for the company.
First of all, it was emphasized that McDonald's did not quite meet expectations in 2024especially in terms of sales growth. Nevertheless, the resilience of the system and the efforts of employees, franchisees and suppliers were highlighted. An important point was the impact of the E. coli outbreak in the USAwhich had a negative impact on results in the fourth quarter. However, assurances were given that food safety is the top priority priority and that the problem has now been largely resolved. A full recovery is expected by the beginning of the second quarter.
The value strategy was emphasized as particularly important. In the USA, the "McValue" platform was introduced in order to consistent and attractive offers and attractive offers. Value programs are also being strengthened in international markets to respond to the ongoing pressure on consumer spending.
Digital initiatives remain a key focus, which is why the company continues to target 250 million active 90-day loyalty program users and USD 45 billion in annual system sales by the end of 2027. The number of active users is currently over 170 million and $30 billion in revenue was generated through the loyalty program in 2024.
The expansion of the restaurant network is also progressing. The aim is to reach 50,000 restaurants by the end of 2027. 2,200 new openings are planned for 2025, with a focus on the USA and international markets.
During the Q&A session, a number of interesting questions were raised by analysts who shed light on important aspects of the business:
The analysts wanted to know how customers are reacting to the new "McValue" platform. It was reported that the uptake of the $5 Meal Deals and the "Buy One, Add One for $1" offers is in line with expectations. Customers appreciate the flexibility of the Buy One, Add One offer and breakfast has proved particularly strong. The average order value for a $5 Meal Deal in the US is over $10, which shows that these offers encourage additional purchases.
The analysts were also interested in the development in the international markets. It was reported that trends are positive in most markets, but there are challenges in the UK and Australia. The situation in France and Canada has improved.
Analysts asked how the growth of digital and loyalty offerings is impacting sales performance. It was confirmed that digital orders and loyalty customers are spending more. spending.
The analyst conference provided valuable insights into McDonald's challenges and opportunities. It became clear that the company continues to focus on its strategic priorities and is optimistic about the future.
The share is up 5% today.
Stay tuned!
