McDonald's Reports Fourth Quarter, Full Year 2014 Results

OAK BROOK, Ill., Jan. 23, 2015/PRNewswire/ -- McDonald's Corporation today announced results for the fourth quarter and year ended December 31, 2014.

Full year results included:

• Global comparable sales decrease of 1.0%, reflecting negative guest traffic in all major segments
• Consolidated revenues decrease of 2% (flat in constant currencies)
• Consolidated operating income decrease of 9% (8% in constant currencies), primarily due to the impact of the previously-disclosed supplier issue in APMEA (Asia/Pacific, Middle East and Africa) and weak operating performance in the U.S.
• Effective tax rate of 35.5%, primarily due to an increase in reserves related to certain foreign tax matters
• Diluted earnings per share of $4.82, a decrease of 13% (11% in constant currencies). The following items, which total $0.54 per share, negatively impacted diluted earnings per share by 10% (10% in constant currencies) for the year:
• $0.31 per share due to an increase in reserves related to certain foreign tax matters
• $0.23 per share due to the estimated impact of the supplier issue resulting from lost sales and profitability in APMEA
• Excluding the impact of these items, earnings per share for the year would have been down 3% (1% in constant currencies) compared to the prior year
• Returned $6.4 billion to shareholders through dividends and share repurchases, in connection with our $18-$20 billion, 3-year cash return target for the years 2014-2016

Fourth quarter results included: 

• Global comparable sales decrease of 0.9%, reflecting negative guest traffic in all major segments
• Consolidated revenues decrease of 7% (1% in constant currencies)
• Consolidated operating income decrease of 20% (15% in constant currencies), primarily due to weak operating performance in the U.S. and the impact of the supplier issue in APMEA
• Diluted earnings per share of $1.13, a decrease of 19% (14% in constant currencies), which includes a negative impact of $0.09 per share due to the supplier issue in APMEA
• Returned $1.8 billion to shareholders through dividends and share repurchases. Full report.