McDonald's Holdings Company (Japan) (2702) Q4 2024 earnings summary

Executive summary

• Achieved all medium-term management plan targets, including 8.3% average annual sales growth and over 10% ROE for 2022–2024.

• System-wide sales reached 829.1B yen in 2024, up 6.6% year-over-year, with operating income of 48.0B yen and net income of 31.9B yen.

• Comparable restaurant sales increased for 37 consecutive quarters through Q4 2024.

• Opened 106 and closed 100 stores in 2024, ending with a net increase of 6 locations and 2,988 restaurants.

• Focused on brand, menu & value, and restaurant/digital/people strategies amid a challenging cost environment.

Financial highlights

• System-wide sales rose 6.6% year-over-year to 829.1B yen; revenue increased 6.1% to 405.4B yen.

• Operating income grew 17.5% year-over-year to 48.0B yen; operating margin improved to 11.8%.

• Net income attributable to owners rose 27.0% year-over-year to 31.9B yen.

• Gross profit improved to 80.99B yen from 72.29B yen year-over-year.

• Dividend per share increased to 49 yen for 2024, with a planned increase to 56 yen for 2025.

Outlook and guidance

• 2025 forecast: system-wide sales to rise 6.1% to 880.0B yen, revenue up 1.7% to 412.5B yen.

• Operating income projected to increase 3.1% to 49.5B yen; operating margin to reach 12.0%.

• Net income expected to decrease 4.6% to 30.5B yen due to higher costs.

• Medium-term plan (2025–2027) targets 4–6% average annual growth in sales and operating income, with ROE above 11%.

• Dividend payout ratio target of 3% of shareholders' equity by FY2027.