McDonald's Holdings Company (Japan) (2702) Q2 2024 earnings summary

Executive summary

• Achieved 10.2% year-over-year net sales growth to 200.9 billion yen for H1 2024, with net income up 31.0% to 14.8 billion yen.

• System-wide sales reached 403.9 billion yen, up 8.6% year-over-year.

• Comparable restaurant sales increased for the 35th consecutive quarter, supported by menu innovation, marketing, and operational improvements.

• Opened 39 new restaurants, expanding the network to 2,971 locations.

• Continued investment in brand, menu, digital, and workforce development, with a focus on sustainability and customer experience.

Financial highlights

• Operating income rose 31.9% year-over-year to 23.7 billion yen, with an operating income ratio of 11.8%.

• Ordinary income for H1 2024 reached 24.2 billion yen, up 35.0% year-over-year.

• Gross profit improved to 40.3 billion yen from 33.1 billion yen a year earlier.

• Net income per share was 112.02 yen, up from 85.52 yen in the prior year period.

• Cash and cash equivalents at period end were 56.8 billion yen, down 8.5 billion yen from December 2023.

Outlook and guidance

• Full-year 2024 guidance maintained: net sales 406.0 billion yen (+6.3%), operating income 45.5 billion yen (+11.3%), net income 27.0 billion yen (+7.3%), and EPS 203.07 yen.

• All store sales forecasted at 826.0 billion yen, a 6.2% increase over 2023.

• No changes to previously announced forecasts; actual results may differ due to various factors.