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McDonald's FY19 comp sales highest 10 years

January 29, 2020

McDonald's global comparable sales grew 5.9% — the most they have in more than a decade, while systemwide sales surpassed $100 billion and consolidated revenues were $21.1 billion, the company said in its financial report this morning. On Jan. 23, the board declared a quarterly cash dividend of $1.25 per share of common stock, payable on March 16 to shareholders of record at the close of business on March 2. 

"2019 marked a year of significant milestones for McDonald's. …" said President and CEO Chris Kempczinski in the financial report today.  "Through the execution of our Velocity Growth Plan, we once again served more customers the food they crave, marking three consecutive years of global comparable guest count growth."

As for the fourth quarter of 2019, McDonald's reported:

• 6.2% increase in international operated segment.
• 6.6% growth in the international developmental licensed segment.
• Consolidated revenues increased 4% (4% in constant currencies).
• Systemwide sales increased 6% (7% in constant currencies).
• Consolidated operating income increased 15% (16% in constant currencies).
• Diluted earnings per share of $2.08 increased 14% (15% in constant currencies). 

Results for the fourth quarter 2019 included $0.11 per share of income tax benefit due to new regulations issued in the fourth quarter 2019 related to the Tax Cuts and Jobs Act of 2017 ("Tax Act"). Excluding this item, diluted earnings per share was $1.97.

Full year highlights include:

• Global comparable sales grew 5.9%. 
• Consolidated revenues were relatively flat with the prior year (increased 3% in constant currencies) at $21.1 billion.
• Systemwide sales increased 4% (7% in constant currencies) to $100.2 billion.
• Diluted earnings per share of $7.88 increased 5% (7% in constant currencies).
• Cash provided by operations was $8.1 billion and free cash flow was $5.7 billion, a 36% increase over the prior year.