McDonald's Holdings Company (Japan) (2702) Q4 2023 earnings summary

Executive summary

• FY2023 all-store sales reached a record ¥777.7 billion; operating income also hit a record ¥40.8 billion, with 33 consecutive quarters of same-store sales growth.

• Revenue rose 8.4% YoY to ¥381.9 billion, while net income increased 26.2% to ¥25.1 billion.

Financial highlights

• Same-store sales grew 7.0% YoY; all-store sales increased 8.4% to ¥777.7 billion, exceeding the revised forecast of ¥773.0 billion.

• Operating income rose 20.9% YoY to ¥40.8 billion; ordinary income increased 24.1% to ¥40.7 billion.

• Net income attributable to owners of parent rose 26.2% YoY to ¥25.1 billion, exceeding the revised forecast of ¥24.0 billion.

• Operating income increased from ¥33.8 billion in FY2022, with sales contributing ¥8.8 billion and marketing ¥2.2 billion; restaurant and people investment added ¥3.8 billion of cost, material costs ¥1.2 billion.

Outlook and guidance

• FY2024 forecast: all-store sales ¥826.0 billion and same-store sales growth of 5.0%.

• FY2024 forecast: revenue ¥406.0 billion (+6.3%), operating income ¥45.5 billion (+11.3%), ordinary income ¥44.5 billion (+9.2%) and net income ¥27.0 billion (+7.3%).

• FY2024 mid-term targets include operating income CAGR of 3–5%, operating income ratio of at least 10% and ROE of at least 10%.

• Forecasts rely on current assumptions; actual results may differ materially as circumstances change.