McDonald’s Corp. reported fourth-quarter net income of $698.7 million, or 87 cents per share on Tuesday, down from $1.20 billion, or $1.44 per share, for the same period last year. Diluted EPS fell due to tax costs associated with the Tax Cuts and Jobs Act of 2017. Adjusted EPS was $1.71, well ahead of the $1.59 FactSet consensus. Revenue of $5.34 billion, fell from $6.03 billion last year, but exceeded the FactSet consensus of $5.23 billion. Global same-store sales rose 5.5%, ahead of the 4.9% FactSet consensus. U.S. same-store sales increased 4.5% due to the McPick 2 platform, beverage value items, and “strong consumer response” to Buttermilk Crispy Tenders and delivery. McDonald’s plans to open 1,000 new McDonald’s restaurants, three-quarters of which will be funded by an expanding network of affiliates and licensees, said Chief Financial Officer Kevin Ozan. The company will also invest $2.4 billion in existing locations to accelerate the company’s Experience of the Future plans in the U.S. which includes digital upgrades. McDonald’s shares are up 0.1% in premarket trading, and are up 44.5% for the past year. The Dow Jones Industrial Average is up 32.4% for the last 12 months.
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