McDonald’s stock slightly dipped after sales disappoint

McDonald’s stock fell marginally in premarket trade Monday as the world’s largest fast food restaurant failed earnings projections and, like Starbucks last week, blamed weaker sales on the Israel-Hamas war.

McDonald’s reported Q4’s revenue of $6.41 billion, 7.5% higher than the $5.92 billion recorded in the same period previous year and slightly lower than analysts’ expectations of $6.45 billion.

Meanwhile, net income increased to $2 billion, or $2.80 per share, up from $1.9 billion the previous year but falling short of FactSet analysts’ forecasts of $2.83 per share.

Adjusted for $72 million in pre-tax costs for software write-offs and $66 million for the layoffs of hundreds of corporate personnel last year, diluted profits per share were $2.95.

The company pointed to the impact of the Israel-Gaza war for its .7% growth in the Middle East, far less than the 4.7% analysts forecasted.

McDonald’s shares gained 12% in the year before Friday’s close, ahead of the 9% increase of an S&P 500 restaurant subindex during the same period, the Wall Street Journal reported.