McDonald's stocks down 4% with weak results, Middle East

ISTANBUL

The stock price of American multinational fast food chain McDonald’s was down 4% on Monday as its financial results came lower than market expectations.

Revenues rose 8% to almost $6.41 billion in the fourth quarter of 2023, from approximately $5.93 billion in the same period of the previous year, according to its financial results statement released before market opening on Monday.

Expectations for the figure, however, were to come in at $6.45 billion.

Diluted earnings per share was $2.95 in 2023, an increase of 14% from $2.59 in 2022, but that figure also came in lower than market estimates of $2.82.

"International Developmental Licensed Markets segment increased 0.7%, reflecting the impact of the war in the Middle East," said the statement.

"Segment performance reflected positive comparable sales in all geographic regions, with the exception of the Middle East, which was impacted by the war in the region," it added.

Consumers’ identification of the fast food brand with the US, which has supported Israel’s war in Gaza, has reportedly hurt sales, especially in Middle East markets.

McDonald's has around 40,000 locations in more than 100 countries.

The company's stock price was down almost 4% to $285.41 per share around 11.00 a.m. EDT (1600GMT) on the New York Stock Exchange.