McDonalds Misses Revenue, Earnings Estimates: Blames Weather

Tyler Durden's picture

Another company which relies on the viability of the global consumer for its profits reports, and sure enough another company that misses: namely McDonalds.  Moments ago the fast-food giant reported Q1 revenues of $6.70 billion, missing expectations of $6.72 billion (pushing the number of companies that have missed revenue estimates this earnings season once again into the majority), and also missing EPS estimates of $1.24, printing at $1.21, which however will not be a surprise to those who have been following our reporting on MCD's same store sales growth, or lack thereof, in the US. But while the collapse of the US consumer is well-known, and will hardly be an embarrassment for McDonalds management to reveal its exposure to it, what does the CEO blame the miss on? Why the weather of course.

From the release:

First Quarter results included:

  • Global comparable sales increase of 0.5% reflecting higher average check, as well as negative guest traffic in the U.S. and Asia/Pacific, Middle East and Africa (APMEA)
  • Consolidated revenues increase of 1% (3% in constant currencies)
  • Consolidated operating income decrease of 1% (1% increase in constant currencies)
  • Diluted earnings per share of $1.21, decrease of 4% (2% in constant currencies)
  • Returned $1.2 billion to shareholders through dividends and share repurchases

In the U.S., comparable sales decreased 1.7% in the first quarter, and operating income declined 3%. Top-line results for the quarter reflected negative comparable guest traffic amid challenging industry dynamics and severe winter weather. Looking ahead, the U.S. remains focused on improving the restaurant experience through a continued commitment to operations and service excellence, customer engagement and menu choice to drive sales and profitability.

And a rather botched attempt at geopolitics:

During the first quarter, Europe grew comparable sales 1.4%, and operating income by 6% (4% in constant currencies). Positive sales performance in the U.K., France and Russia was partially offset by ongoing weakness in Germany. Across Europe, a combination of unique limited-time food events, premium offerings and everyday affordable pricing contributed to positive performance.

Uhm, strong Russia and weak Germany? Is the snow to blame for that too?

Regardless, how ironic is it that while MCD is bitching about snow in the winter, its own 2006 spin off, and the company that just keeps reporting soaring same store sales - yes, even during the harsh winter weather - Chipotle, said weather had zero impact on its own sales. Oh yes, that's right, because when it comes to excuses, anything will do, and the more companies that use the same excuse, the better. Apparently, the thinking goes, if everyone lies about the reason for their profit weakness with the same lie, it will make that lie more credible.

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Haus-Targaryen's picture

I find it funny "they" always blame the weather. 

"Oh, due to low temperatures and lots of snow, everyone decided to stay at home and not spend money."

"Oh, due to beautiful weather, and lots of sunshine, everyone decided to go to the park and have a picknic and not to spend money."

Pods.

Millivanilli's picture

McD sells pigshit in a bun.   I don't understand why they are still around.  But then I look at the general public...

GetZeeGold's picture

 

 

I warned them not to raise the price of the McDouble!

Tengri Temujin's picture

They may want to rethink the closure of those Crimea stores considering its a Prime Tourist Destination for Eastern Europe.

Only thing I buy there is the coffee when I am traveling, tried their chicken sandwich, worst chicken breast I have ever had, might as well have chewed the cardboard box

Easy thing they should make a menu item called the McNULAND, that way the state department will buy it to the tune of millions so they can hand them out as part of the RIOT MEAL special.  Comes with medical mask to cover your face and a little wood baton.

tarsubil's picture

I once was driving with someone who had to stop at McD's. I thought I'd try something so I got a strawberry shake or whatever McD's calls it. It was the most disgusting thing I've ever tasted. The flavor was something that was obviously artificial and while it was pink, it tasted unlike anything I've ever tasted before. I cannot believe this crap hole still makes money selling their crap on just about every corner in America.

Headbanger's picture

Quiznos just filed for Chapter 11 so the whole fast food industry is shrinking along with retail stores cause consumers quit going out to the mall and stopping by McD's on the way back home.

disabledvet's picture

Staples, Penney's, WMT, you name it. "Brookfield Properties is going under" folks. Get with the Program. Land has value...but not a shopping mall.

old naughty's picture

"I warned them not to raise the price of the McDouble!"

but they have to...cows are skinny, not fed well these days (oooooh, it's the weather, right).

SilverIsKing's picture

They must have given you the McSlime.

Looks like a strawberry shake and takes like pig vomit.

GubbermintWorker's picture

Because its fast, relatively inexpensive, and some of the pig shit tasts good like their steak, egg, and cheese sandwich in the morning.  And....enough calories to last most of the day! I probably caused their decrease in revenue though as I only go there when I get two fer one coupons and share that pig shit with other fellow workers.

pods's picture

You do need to use quotes around "Steak, egg and cheese" though.

pods

GetZeeGold's picture

 

 

TIme for a perp walk!

 

It sucks getting locked in. Maybe it's the other pods.

Upswaller's picture

Whether the weather be fine
Or whether the weather be not
Whether the weather be cold
Or whether the weather be hot
They'll weather the weather
Whatever the weather
Whether we like it or not.

pods's picture

Little letters and no period.

pods

pods's picture

Didn't really understand the OP using my username.  Didn't recognize the name or remember a beef with them.

Unless maybe he was using the acronym speaking of McDs?

Piece Of Dog Shit?

:)

pods

Croesus's picture

Didn't they blame the weather, the last time around? 

ParkAveFlasher's picture

McDonalds is healthy and wholesome, fairly priced, and doggone it, people really like it.  That rascal Putin is behind this, I'm sure!

intric8's picture

I personally contributed to the mcdonalds earnings miss. I cant even afford a quarter pounder meal. Im too busy living off top ramen and a friggin banana. Wheres my steak dinner, tony wilson?

Headbanger's picture

It's when you start making tomato soup with ketchup packets taken from McD's that you have to worry.

Osmium's picture

I hear iPads are quite tasty.

icanhasbailout's picture

your hedonically-adjusted steak dinner is right here in this can of Alpo

intric8's picture

Alpo costs big bucks these days. Monetary inflation is on the run, and pretty soon pets will be applying for food stamps.

NoDebt's picture

"Negative guest traffic in the U.S. and Asia/Pacific, Middle East and Africa"

Thank God for South America and Canada or this might be interpreted as a worldwide down-trend.

ThisIsBob's picture

Sales in Crimea also took a big hit.

Tengri Temujin's picture

They should officially sponsor the Maidan crowd while Burger King sponsors East Ukraine, then we can have some REAL BURGER WARS

Laughinggrizzley's picture

“The most brilliant propagandist technique will yield no success unless one fundamental principle is borne in mind constantly - it must confine itself to a few points and repeat them over and over.” 
 Joseph Goebbels

Millivanilli's picture

“Think of the press as a great keyboard 
on which the government can play.” 
Joseph Goebbels

kchrisc's picture

The Four Rs
Rejection: Quit paying, quit obeying, quit playing.
Revolution: It is inevitable, so prepare, as they are.
Retribution: Is there really any place for these sociopaths and criminals in a
restored civil and Constitutional society?!
Restoration: Restore the Constitutional republic.

shiftless's picture

Except the Constitution should not be restored, because it was obviously a failure from the moment it was drafted.

“But whether the Constitution really be one thing, or another, this much is certain - that it has either authorized such a government as we have had, or has been powerless to prevent it. In either case it is unfit to exist.” ? Lysander Spooner

Dapper Dan's picture

"I'll have a Fellatio-fish please"

KidHorn's picture

McDonalds shares are at around $100 and they generate about $5 annual profit per share. Maybe they missed, but I would take their shares over 99% of the market.

Dr. Engali's picture

That may be true, but like everything else in this 'market' they are still over priced.

disabledvet's picture

"they always phuck you at the drive thru."

if i had a dime for every time i got a drink cup that leaked all over me i'd have at least a hundred free Quarter Pounders with Cheesiness.

One time...and I do feel for these folks because none of these kids get a please or thank you...the gal had actually bitten the cup and pefectly put the cap is "just the wrong place."

Reminds me of the folks "back in the day" who used to put their dimes in the cigarette lighter for the toll booth operator. "And no, you may not have directions either."

Thanks...i've got that covered too nowadays.

Has this market opened yet?

kchrisc's picture

Yeah, shitty fast-food service is what started me on the road to better health.

I was addicted to soda and would stop once or twice a day to get one. Well, a third of the time the soda would be flat, and the rest of the time there'd be only like two ice cubes. After some bad lid incidences, I realized I had to reevaluate and I quit the habit.

Next up was getting a quick burger instead of a candy bar or something. After numerous incidents, I had to quit that too. How fucking hard is it to get ONE burger order, nothing special, correct?! I started using the mom-and-pop local joints. No drive thru, but closer to real and one's order is usually correct.

Next was the occasional give-in to the kids. However, the now career McD employees, would fuck up those meals about half the time, so we started eating elsewhere and then going over to use the play area without making a purchase.

Now McD's coffee is good, for the price you pay, but can they ever put the lid on correctly. I had one punk look at me shitty when I checked the lid-seal after he handed it too me. Well, it's not his nuts that get burned, is it?!

I once had a McD coffee "explode" on me. The lid was on just right, in Murphy's law fashion, so as to channel any but the most delicate grip into blowing the lid off. The escaping lid then splashed scalding coffee on my hand which reacted instinctively and splashed scalding coffee on me which then caused me to react instinctively...

However, I do enjoy going into a fast food joint in the ghetto and seeing only Latinos working there. Seeing the same at a ghetto Church's Chicken nearly makes me laugh my ass off--every time.

Thanks shitty fast food service, you have made me healthier by reminding me to stay away.

Sidenote: Every time I don't go to a fast food joint, the weather has been a factor. LOL

john39's picture

overpriced...  and how about just wrong.  they serve poison, like most other corporate food providers.  why invest in any company that provides no real benefit whatsoever?  even their coffee is terrible.

Dr. Engali's picture

It would be nice if just once they tried something unique like telling the truth: "we blame this shitty ass economy and those fucks in Washington are doing everything they can to make it worse, plus we sell pink slime  we like to call meat".

GetZeeGold's picture

 

 

Cause they don't want to commit suicide?

Ghordius's picture

"...we sell pink slime we like to call meat" *

(*) subject to availability, some foreign, freedom-hating countries forbid us to exert our freedom to sell pink slime

BandGap's picture

Ugh.

Processed meat "food" for the masses. I'm surprised they even have earnings. Talk about a company who will bend to the whim of every special interest group imaginable.