McDonald's reported higher comparable sales in the final three months of the year in the US, China and other key markets, but earnings were dented by a one-time hit from US tax reform. Net income was $698.7 billion in the fourth quarter, down 41 percent from the year-ago period, hit by $700 million due to taxes on repatriated earnings following the US tax reform passed in December.
Revenues fell 11 percent to $5.3 billion following the sale of company-owned restaurants to franchisers. McDonald's cited a "strong consumer response" to its new "Buttermilk Crispy Tenders" chicken dish and its promotional "McPick 2" offering as factors in a 4.5 percent rise in US comparable sales.
Among growth-oriented countries, China scored a four percent rise in comparable sales, but that was partly offset "by continued challenges in South Korea," the company said. Globally comparable sales increased 5.5 percent during the fourth quarter.
Chief executive Steve Easterbrook has focused on improving restaurant appearance and service and, more recently on ramping up home-delivery and mobile pay initiatives. "We are confident that we will accelerate our momentum by capitalizing on our strong business model and distinct brand advantages in convenience, menu variety and value," Easterbrook said. Shares of McDonald's dipped 0.7 percent to $177.77 in pre-market trading.
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