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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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Tue, 04/22/2014 - 08:17 | 4682084 Haus-Targaryen
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.

Tue, 04/22/2014 - 08:19 | 4682089 Millivanilli
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...

Tue, 04/22/2014 - 08:19 | 4682091 GetZeeGold
GetZeeGold's picture

 

 

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

Tue, 04/22/2014 - 08:44 | 4682144 Tengri Temujin
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.

Tue, 04/22/2014 - 08:45 | 4682162 tarsubil
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.

Tue, 04/22/2014 - 08:51 | 4682180 Headbanger
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.

Tue, 04/22/2014 - 08:57 | 4682204 disabledvet
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.

Tue, 04/22/2014 - 09:31 | 4682325 old naughty
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).

Tue, 04/22/2014 - 10:10 | 4682456 SilverIsKing
SilverIsKing's picture

They must have given you the McSlime.

Looks like a strawberry shake and takes like pig vomit.

Tue, 04/22/2014 - 09:17 | 4682260 GubbermintWorker
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.

Tue, 04/22/2014 - 10:22 | 4682492 pods
pods's picture

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

pods

Tue, 04/22/2014 - 08:24 | 4682106 ParkAveFlasher
ParkAveFlasher's picture

Say, that's not pods.

Tue, 04/22/2014 - 08:27 | 4682110 GetZeeGold
GetZeeGold's picture

 

 

TIme for a perp walk!

 

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

Tue, 04/22/2014 - 09:27 | 4682308 Upswaller
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.

Tue, 04/22/2014 - 10:24 | 4682502 pods
pods's picture

Little letters and no period.

pods

Tue, 04/22/2014 - 11:10 | 4682627 ParkAveFlasher
ParkAveFlasher's picture

got it

paf

Tue, 04/22/2014 - 11:15 | 4682648 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

Tue, 04/22/2014 - 08:57 | 4682199 Croesus
Croesus's picture

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

Tue, 04/22/2014 - 08:18 | 4682085 digitlman
digitlman's picture

BULLSHIT.

Tue, 04/22/2014 - 08:19 | 4682090 Winston Churchill
Winston Churchill's picture

Fries with that ?

Tue, 04/22/2014 - 08:20 | 4682097 GetZeeGold
GetZeeGold's picture

 

 

In this weather?

Tue, 04/22/2014 - 08:41 | 4682151 101 years and c...
101 years and counting's picture

next time i get caught cheating on my wife, i'm blaming the weather.

Tue, 04/22/2014 - 08:52 | 4682184 Grande Tetons
Grande Tetons's picture

Snowjob

Tue, 04/22/2014 - 10:12 | 4682461 SilverIsKing
SilverIsKing's picture

How many times have you been caught before?

Tue, 04/22/2014 - 08:20 | 4682093 ParkAveFlasher
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!

Tue, 04/22/2014 - 08:41 | 4682146 intric8
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?

Tue, 04/22/2014 - 08:57 | 4682203 Headbanger
Headbanger's picture

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

Tue, 04/22/2014 - 09:20 | 4682276 Osmium
Osmium's picture

I hear iPads are quite tasty.

Tue, 04/22/2014 - 09:44 | 4682369 icanhasbailout
icanhasbailout's picture

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

Tue, 04/22/2014 - 10:22 | 4682490 intric8
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.

Tue, 04/22/2014 - 12:01 | 4682819 Brindle702
Brindle702's picture

Brilliant!

Tue, 04/22/2014 - 08:20 | 4682094 NoDebt
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.

Tue, 04/22/2014 - 08:31 | 4682119 ThisIsBob
ThisIsBob's picture

Sales in Crimea also took a big hit.

Tue, 04/22/2014 - 08:46 | 4682167 Tengri Temujin
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

Tue, 04/22/2014 - 08:21 | 4682096 Laughinggrizzley
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

Tue, 04/22/2014 - 09:00 | 4682211 Millivanilli
Millivanilli's picture

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

Tue, 04/22/2014 - 12:25 | 4682926 kchrisc
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.

Wed, 04/23/2014 - 14:22 | 4687338 shiftless
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

Tue, 04/22/2014 - 08:20 | 4682099 Super Broccoli
Super Broccoli's picture

I'm lovin' it ;-)

Tue, 04/22/2014 - 08:22 | 4682103 booboo
booboo's picture

McFlurried

Tue, 04/22/2014 - 08:52 | 4682183 Dapper Dan
Dapper Dan's picture

"I'll have a Fellatio-fish please"

Tue, 04/22/2014 - 08:23 | 4682105 KidHorn
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.

Tue, 04/22/2014 - 08:36 | 4682133 Dr. Engali
Dr. Engali's picture

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

Tue, 04/22/2014 - 09:04 | 4682215 disabledvet
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?

Tue, 04/22/2014 - 12:53 | 4683042 kchrisc
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

Tue, 04/22/2014 - 09:12 | 4682233 john39
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.

Tue, 04/22/2014 - 08:30 | 4682113 Dr. Engali
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".

Tue, 04/22/2014 - 08:32 | 4682122 GetZeeGold
GetZeeGold's picture

 

 

Cause they don't want to commit suicide?

Tue, 04/22/2014 - 08:33 | 4682126 Ghordius
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

Tue, 04/22/2014 - 09:00 | 4682210 BandGap
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. 

Tue, 04/22/2014 - 10:09 | 4682452 ronsterizor
ronsterizor's picture

THE FUCKS IN WASHINGTON ARE PUPPETS, THE PUPPETEERS ARE THE BANKSTERS.

Tue, 04/22/2014 - 08:30 | 4682114 WillyGroper
WillyGroper's picture

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.

 

Is it just me or are other people as annoyed by these corporate bullshit buzzwords?

restaurant experience

service excellence

customer engagement...WTF

Tue, 04/22/2014 - 08:30 | 4682117 f16hoser
f16hoser's picture

Weather? How about the fact that your food SUCKS!

Tue, 04/22/2014 - 08:41 | 4682150 Rip van Wrinkle
Rip van Wrinkle's picture

What the f*ck has McDonald's got to do with food?

Tue, 04/22/2014 - 09:38 | 4682343 Rubbish
Rubbish's picture

Bread deliveries are up YOY so far for the sit downs by 1% on west coast, but from experience dead soldiers (beer cans) are way up in parking lots. Bottom lines will pay soon.

Tue, 04/22/2014 - 08:34 | 4682125 Squid Viscous
Squid Viscous's picture

when fat fucks want their fat fix I don't think they give a fat flying fuck about the weather

Tue, 04/22/2014 - 08:54 | 4682186 SheepDog-One
SheepDog-One's picture

I can't recall a single day here when the weather was so bad that people were confined indoors.....this 'blaming the weather' for everything is so worn out.

Tue, 04/22/2014 - 09:28 | 4682312 El Hosel
El Hosel's picture

Ding Ding Ding!

Tue, 04/22/2014 - 09:41 | 4682357 Rubbish
Rubbish's picture

You could get banned for this, everyone knows Tyler has a secret fetish for obese chicks. You don't think the smell of fresh cookies coming out of his pad daily is for nuttin do you?

 

Gold Bitchez...

Tue, 04/22/2014 - 08:35 | 4682128 lakecity55
lakecity55's picture

"Sales were flat due to boycott by Crimea."

Tue, 04/22/2014 - 08:49 | 4682137 replaceme
replaceme's picture

I know McDonalds is made from humans, and I don't care.. I eat it, and I always feel guilty, but hell, they must put straight heroin in those fries...  Or salt, whatever.  NOMNOMNOM.  Now I freeking want a sausage biscuit with cheese, damn you Ronald M!

Tue, 04/22/2014 - 10:51 | 4682578 Zerozen
Zerozen's picture

Lard and salt, that's all it is.

I make my own fries at home and they take about 20 mins to make and doesn't matter whether I bake or fry them, they kick the shit out of McD's fries, or any fast food fries for that matter.

Tue, 04/22/2014 - 08:39 | 4682142 Smegley Wanxalot
Smegley Wanxalot's picture

"Due to the weather, people have stopped eating".

Gimme a break.  Neither hell nor high water would keep the braindead obese drool-monkeys from making their thrice-daily pilgrimage to McDonalds, EBT's in hand, for their "nourishment."

Tue, 04/22/2014 - 09:27 | 4682310 El Hosel
El Hosel's picture

Looky there, here comes some skinny weather.

Tue, 04/22/2014 - 08:41 | 4682149 ES-Sniper
ES-Sniper's picture

They made $6.70 billion (with a B) selling burgers and fries to you, and you know you ate it too, and you still trash them

You guys are becoming cynical thugs.

Zero Hedge research is the best around, but your comments really dumb this place down.

 

Ya, go ahead and bring it, I know you will.....why not make some money this morning instead.

 

 

 


 

 

 

 

Tue, 04/22/2014 - 08:47 | 4682170 SheepDog-One
SheepDog-One's picture

If you actually knew anything about McD's, you couldn't even call it 'burgers and fries'...and no I haven't been there in years. And how are you suggesting to 'make money', buy some McD stock? Whatever.

Tue, 04/22/2014 - 09:03 | 4682214 GetZeeGold
GetZeeGold's picture

 

 

Meet the hedge fund manager that is 100% in McDonald's equities......and is a tad nervous right now.

Tue, 04/22/2014 - 08:58 | 4682206 BandGap
BandGap's picture

Seriously? Just because you eat that shit doesn't mean everyone else does. I have not eaten at McDonald's more than 5 times in the past 10 years. That's because the food sucks.

Tue, 04/22/2014 - 10:53 | 4682583 Zerozen
Zerozen's picture

Same here. Nowadays you couldn't pay me to eat that crap.

Tue, 04/22/2014 - 08:49 | 4682175 Seasmoke
Seasmoke's picture

That $1 Menu, Ain't what it used to be !!!!!

Tue, 04/22/2014 - 09:13 | 4682237 negative rates
negative rates's picture

Neither is your dollar.

Tue, 04/22/2014 - 08:54 | 4682190 buzzsaw99
buzzsaw99's picture

For the same price I can get much better food and service elsewhere.

Tue, 04/22/2014 - 08:57 | 4682201 Colonel Klink
Colonel Klink's picture

Dear McDonalds, it's not the weather.  It's the overprocessed crap you sell, and people like me boycotting you for shitty business practices.  Like firing people who do the right thing, but isn't what your corporate policy states.

Tue, 04/22/2014 - 09:05 | 4682219 MFL8240
MFL8240's picture

Do know anyone who stops eating because its snowing out!

Tue, 04/22/2014 - 09:16 | 4682254 Cattender
Cattender's picture

i eat MORE during a really cold winter... just not EVER at Micky D's!

Tue, 04/22/2014 - 09:21 | 4682283 El Hosel
El Hosel's picture

Throw another wormburger on the grill, its going to be a cold one.

Tue, 04/22/2014 - 09:17 | 4682256 Rising Sun
Rising Sun's picture

I stopped taking these reported earnings seriously a long time ago.

 

The reasons are fabricated.  The numbers are "adjusted".

 

It's remarkable how GDP is tanking, yet revenue and earnings are flat/up.

 

When that fat cunt shuts the printer off, we may get back to reality and have a chance at some kind of recovery.

 

Yes Yellen, I'm talking about you - stupid bitch!!!!!!!!!!!

Tue, 04/22/2014 - 09:19 | 4682274 Peter Pan
Peter Pan's picture

McDonalds missing revenue targets is a victory for US health.

Tue, 04/22/2014 - 09:23 | 4682286 intric8
intric8's picture

"negative guest traffic.."

Thats when people walk in, ask for water, grab ketchup packets, sugar and cream and walk out without buying anything

Tue, 04/22/2014 - 09:37 | 4682340 FreeNewEnergy
FreeNewEnergy's picture

It was so cold out...

 

... I stopped eating.

... Ronald McDonald was holding his nuts.

... everyone went to Taco Bell.

Tue, 04/22/2014 - 09:47 | 4682382 Curt W
Curt W's picture

AH, I remember the good old days, before we had this pesky weather.

Cheeseburgers were 59 cents, Fries were 39 cents.

But then, they invented weather and global warming, the good old days are gone

Tue, 04/22/2014 - 10:06 | 4682443 BiteMeBO
BiteMeBO's picture

Is a mushroom cloud weather?  

Tue, 04/22/2014 - 11:21 | 4682668 alangreedspank
alangreedspank's picture

If I have a burger to grab, I'll go with either A&W or Harvey's. It actually tastes like a backyard BBQ burger and none of that funky-don't-wanna-know-what's-in-it sauce.

Tue, 04/22/2014 - 11:48 | 4682759 pupdog1
pupdog1's picture

Besides the once-tasty now-hideous food, my local McDonalds has adopted a policy of hiring only gangsta inner city thug kids. Let's just say they don't exactly adhere to the script when dealing with the suburban public.

The weather has been really bad for the last two years, so that's why I haven't gone back there.

Tue, 04/22/2014 - 12:03 | 4682833 rosiescenario
rosiescenario's picture

...and yet the weather did not hurt HOG motorcycle sales and earnings????????

 

....and consumers have enough money to buy these $15k toys?????

Tue, 04/22/2014 - 12:37 | 4682977 Caveman93
Caveman93's picture

My Weber works fine in the snow so WTF is McD's issues again?

Tue, 04/22/2014 - 18:52 | 4684497 Youri Carma
Youri Carma's picture

Joseph Goebbels: “If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.”

Joseph Goebbels: “The English follow the principle that when one lies, one should lie big, and stick to it. They keep up their lies, even at the risk of looking ridiculous.”

Tue, 04/22/2014 - 20:46 | 4684916 SidKhadak
SidKhadak's picture
Russia labels GMO Foods as “Biological Warfare Weapon”

With nearly 35% of the American people reported to be obese and a further 20% being reported as having a mental illness, the “extreme correlation” between these health epidemics and the rise of GMO foods can no longer be ignored…but by the Obama regime not only ignoring them, and actually protecting GMO corporations…it is “logical to assume” that these peoples are undergoing what is, perhaps, the largest bio-warfare experiment ever conducted in human history.

And to further note, the United States, unlike some 60 other countries, lacks a legal requirement to label GMO’s despite a recent New York Times poll that found that 93% of Americans want GMO food to be labeled, all of which leads to the question…WHY?

Russia labels GMO Foods as “Biological Warfare Weapon”

http://bodhita.com/russia-labels-gmo-foods-as-biological-warfare-weapon/

Do NOT follow this link or you will be banned from the site!