In this file:


·         McDonald's Reports Good Results, To Continue Growth in 2019

·         McDonald’s Operators Are Worried by the Chain’s Huge Delivery Success

·         McDonald’s to open 50 more outlets in Netherlands



McDonald's Reports Good Results, To Continue Growth in 2019


Great Speculations, Trefis Team, Contributor

via Forbes - Feb 4, 2019 


McDonald’s (NYSE: MCD) released its full year results on January 30, 2019. The company beat the consensus earnings but missed slightly on revenue for the 4th Quarter. This is primarily due to the refranchising of its restaurants that the company has been undertaking for a couple of years. The company’s long-term goal is for 95% of McDonald’s restaurants to be owned by franchisees, and at the end of FY 2018, this figure stood at 92.7%. Overall the company posted revenue of $21.03 billion with earnings of $7.50, up 18% year on year as the strategy has also helped them in cutting down costs and thus improving margins. Global comparable sales also improved by 4.5% YOY.


We have a $191 price estimate for McDonald’s. The charts have been made using our new, interactive platform. The various driver assumptions can be modified by clicking here for our interactive dashboard on Our Outlook For McDonald’s in FY 2019, to gauge their impact on the revenue, earnings, and price per share metrics.


Refranchising Restaurants ... 


Technology Initiatives ... 


New Launches ...


Positive Industry Environment ... 


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McDonald’s Operators Are Worried by the Chain’s Huge Delivery Success

McDonald's is going full speed ahead with its Uber Eats integration, but at what cost? Some operators are saying that the system's delivery economics are unsustainable, and, eventually, that's going to have to change.


By Erika Adams, Skift Table

February 4, 2019


Delivery has developed into a $3 billion business across McDonald’s global operations in the last two years, and a slowdown in the segment is not expected anytime soon.


Over 19,000 McDonald’s locations are now set up for delivery, a 68 percent spike from delivery-enabled locations McDonald’s reported six months ago. The locations that offer delivery now add up to more than half of McDonald’s global footprint.


In July, McDonald’s CEO Steven Easterbrook called the pace of delivery growth “unprecedented” for the company. Now, the chain is starting to think more deliberately about how to grow awareness in markets outside of the usual suspects of New York City, Chicago, or San Francisco, where food delivery options have been around for years.


“We are confident that delivery offers additional growth potential for our business,” said Easterbrook. “Even with the momentum we already have established, we know we have an opportunity to let more customers know that McDonald’s will bring meals to their homes, offices, and college dorm rooms.”


McDonald’s hasn’t invested in any large-scale marketing campaign in the U.S. around delivery yet, but it’ll come eventually. As Easterbrook said, McDonald’s typically won’t invest in any sort of national marketing campaign until at least 70 percent of the U.S. system can offer what’s being advertised; in this case, delivery.


Operators Want a Better Deal ...


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McDonald’s to open 50 more outlets in Netherlands 

February 5, 2019


Hamburger giant McDonald’s is going to open around 50 new outlets in the Netherlands in the next few years and will also expand its delivery service and cafes, the AD reports.


McDonald’s already has 247 fast-food restaurants in the Netherlands and is looking to ‘fill up the blank spots on the map’, such as Groningen province and the A15 motorway at Hardinxveld-Giessendam,’ McDonald’s spokesperson Eunice Koekkoek told the paper.


McDelivery, which uses delivery service Uber Eats, is already available in the bigger Dutch cities but...