McDonald’s is anticipated to announce its fourth-quarter earnings on Wednesday, with analysts from LSEG expecting earnings per share to reach $3.05 and revenue to total approximately $6.84 billion. As a significant indicator of consumer spending trends, the fast-food chain has expressed concern over reduced spending among low-income customers for over a year. To adapt, McDonald’s has introduced various discounted offerings, including a revamped value menu and the return of Extra Value combo meals.
A key development has been the shift of higher-income customers toward fast-food options, attracted by promotions that cater to this demographic. Notably, the recent return of popular campaigns, such as the Monopoly promotion and the Grinch meal for the holiday season, has contributed positively to sales figures. According to StreetAccount estimates, analysts expect a 3.9% increase in same-store sales, driven by a 5.4% rise in the U.S. market.
Despite these promising sales forecasts, McDonald’s stock has experienced only a modest increase of about 4% over the past year. This growth has been tempered by broader consumer concerns and the rising popularity of GLP-1 medications, which may be influencing eating habits.
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