NEW YORK (TheStreet) -- McDonald's (MCD) was rising 3.4% to $98.44 at 11:11 a.m. on Tuesday after CFO Pete Bensen spoke at the Bank of America/Merrill Lynch 2014 Consumer & Retail Conference and explained at length that the world's largest restaurant chain by revenue could fix its decline in comparable-store sales in February.
McDonald's reported a greater-than-expected drop in global comparable-store sales for February, thanks in part to slow U.S. business. McDonald's noted worldwide sales at restaurants open at least 13 months fell 0.3% for the month, which was worse than analysts' average estimate of a 0.1% decline, according to Reuters. Same-restaurant sales in the U.S. fell 1.4%, worse than analysts' estimate of a 0.6% decline.
Despite this news, McDonald's climbed to its highest price since Nov. 2013 after Bensen's remarks, in which he said the company would stabilize its performance in the U.S., Japan and Germany in 2014 and noted McDonald's growth in several emerging markets. Furthermore, McDonald's plans to return $5 billion to its shareholders this year.
Must Read: Warren Buffett's 10 Favorite Stocks
- MCD's revenue growth has slightly outpaced the industry average of 5.4%. Since the same quarter one year prior, revenues slightly increased by 2.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Net operating cash flow has slightly increased to $1,873.50 million or 1.26% when compared to the same quarter last year. In addition, MCDONALD'S CORP has also vastly surpassed the industry average cash flow growth rate of -51.97%.
- MCDONALD'S CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MCDONALD'S CORP increased its bottom line by earning $5.56 versus $5.36 in the prior year. This year, the market expects an improvement in earnings ($5.85 versus $5.56).
- The net income growth from the same quarter one year ago has exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income increased by 0.1% when compared to the same quarter one year prior, going from $1,396.10 million to $1,397.00 million.
- 44.43% is the gross profit margin for MCDONALD'S CORP which we consider to be strong. Regardless of MCD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MCD's net profit margin of 19.69% compares favorably to the industry average.
- You can view the full analysis from the report here: MCD Ratings Report
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV