McDonald’s 2016 Revenues To Decline YoY Despite Improvement; To Pick Up Pace Thereafter
McDonald’s (NYSE:MCD) posted strong comparable store sales growth in its Q1 2o16 earnings report. The company has been witnessing revenue declines over the past two fiscal years. Despite improvement in the first quarter, the company’s net revenue in 2016 is estimated to further decline.
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Trefis estimates the company’s net revenues to decline at an average rate of 4.65% YoY in the next three quarters.
Closing the under-performing company-operated restaurants might result in a decline in annual customer count. Moreover, the promotional offers and menu price cuts might further impact the average check, leading to 6.7% YoY decline in company-operated revenues.
Increase in franchised restaurants, offset by a decrease in the average check, might effectively lead to a 2% increase in franchised revenues.
Have more questions on McDonald’s? See the links below.
- What’s McDonald’s Fundamental Value Based On Expected 2016 Results? (Updated After Q1 2016)
- By What Percentage Have McDonald’s Revenues And EBITDA Grown Over The Last Five Years?
- What Is McDonald’s Revenue & EBITDA Breakdown? (Updated After Q1 2016)
- How Has McDonald’s Revenue And EBITDA Composition Changed Over 2011-2015?
- McDonald’s Q1 FY 2016 Earnings Preview: All Day Breakfast To Drive Comp Sales In The US
- Where Will McDonald’s Revenue And EBITDA Growth Come From Over The Next Three Years? (Updated After Q1 2016)
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