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What's going on?
Things are looking good at McDonalds. The fast-food giant posted its best quarterly profit in almost four years! People are calling Mickey Ds a comeback thanks to some of the changes that new CEO Steve Easterbrook has made.
What does this mean?
Customers cant seem to get enough of the McMuffin. The companys strong fourth quarter has been largely attributed to the launch of all-day breakfast options back in October. Sales at its restaurants in the U.S. rose 5.7% last quarter and were up 5% globally. This is almost double the sales growth that investors were expecting! It also made more of a profit than expected.
Why should I care?
Bigger Picture: The new CEO is turning around the company. All-day breakfast is just one of the big changes that CEO Steve Easterbrook has put into place. Since taking the helm in March, he has pared back menu options, improved order accuracy and speed, and worked to be more transparent about how the food is made. Easterbrook also raised wages for workers at company-owned stores.
For the stock: Good results lead to happy investors. McDonalds stock rose on the earnings news, up almost 1%, on a day when the rest of the market was down. Plus, the stock far outpaced the rest of the market last year, rising 26 percent in 2015. Unlike the increasingly pessimistic outlook for the overall economy, McDonalds said that it expects continued positive [revenue] momentum for 2016.
Originally posted as part of the Finimize daily email.
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