McDonald's (MCD 176.27, -1.50) has given up 0.8% in pre-market despite beating quarterly expectations.
The fast food giant reported above-consensus fourth quarter earnings of $1.71 per share on revenue of $5.34 billion, which declined 11.4% year-over-year, but was still ahead of market estimates. The decline in revenue was due to the company's ongoing refranchising initiative. Systemwide sales rose 8.0% in constant currency.
Global comparable sales grew 5.5% with positive guest counts in all segments. Comparable sales in the United States grew 4.5%, matching expectations. Domestic comparable sales growth was fueled by a strong performance from core menu items.
Comparable sales in the High Growth segment rose 4.0% with a strong performance in China offsetting continued challenges in South Korea. Comparable sales in Foundational markets rose 8.0% due to a positive performance from all geographic regions.
Consolidated operating income increased 8.9% year-over-year to $2.14 billion.
For 2018, the company expects that capital expenditures will be about $2.40 billion with the majority reinvested in existing locations.