Based in Chicago, USA, McDonald's is a fast food company. It is recognised as the leading fast food chain in the United States and worldwide. The group has more than 36,900 outlets and is present in more than 100 countries around the world. In fiscal year 2021, the company saw an increase in its figures after a difficult year in 2020. The latter was marked by the Covid-19 crisis.
The McDonald's Group has had a relatively slow start to the 2021 financial year following the Covid-19 pandemic. The Covid-19 pandemic severely affected the company's quarterly results the previous year. The pandemic led to the temporary closure of the company's restaurants around the world.
For the first three months of fiscal year 2021, the fast food giant posted sales of $5.66 billion compared to $4.71 billion for the same period in 2020. This represents an increase of 20.16%.
For the first quarter of 2021, the golden arch brand posted a net profit of $1.1 billion. This is the same value recorded a year earlier in the same period. When the results for that quarter were released, the group estimated at the time that about 75% of its restaurants were able to offer drive-through, take-out and delivery services.
McDonald's franchise affiliates account for 55.8% of this sales. There are also more than 36,251 franchises, of which there are 146 affiliates. The 2,677 company-owned restaurants contribute 42.4% of sales. The other types of services offered by the group account for 1.8% of turnover.
In the second quarter of 2020, the McDonald's Group figures continued to rise. Although the US retailer's performance in this period was less impressive than in previous years, it was still up.
For the whole of Q2-2021, the American group's net profit was $2.21 billion compared to $483.8 million in the same period last year. This is an increase on the same period last year. This performance reflects the increase in sales during the quarter as well as a return to previous consumer buying patterns following the pandemic.
In the April-June period, the fast-food giant achieved sales of $5.88 billion, compared with $3.7 billion in the same period in 2020. This equates to a 58.91% year-on-year increase. Progress has been made even if not all forecasts have been met.
With over 200,000 employees, McDonald's derives its turnover mainly from the USA. This part of the world accounts for 47.7% of turnover. In addition, since the end of June 2020, almost all of the brand's restaurants have been open in several countries around the world to provide at least delivery sales.
McDonald's Group's business rebounded in the third quarter of 2021. For the period as a whole, the US retailer's sales reached $6.2 billion, up around 14.4% year-on-year. In the third quarter of 2020, this figure was 5.42 billion dollars. This underperformance is associated with the group's timid recovery from the Covid-19 crisis.
In contrast, for Q3-2021, the company recorded a net profit of $2.14 billion compared to $1.76 billion in the same period last year. This represents a year-on-year increase of 21.59%. This increase was supported by the capital gain from the sale of part of the group's stake in its Japanese subsidiary.
In the quarter under review, the company generated diluted earnings per share of $2.7 compared to $2.85 in the previous quarter. This marks a 5.26% increase in like-for-like sales between the two periods. The increase was primarily in US restaurants in Q3-2021.
In addition, during this period, there was an increase in the use of home delivery and take-out services.
For the fourth quarter of its 2021 fiscal year, McDonald's Group reported continued growth in results. In this last quarter of the year, the American fast food giant generated sales of 6 billion dollars compared to 5.31 billion dollars in the same period in 2020. It reports an increase of around 13% compared to Q4-2020. Net income for this period is $1.63 billion.
All of this revenue comes from the group's common stock. McDonald's was able to generate a gross profit of $3.26 billion in this reporting period compared to $3.43 billion in the previous quarter. This is a decrease of 4.95 per cent compared to both periods.
Earnings per share were $2.18 (excluding exceptional items) for the quarter. At this level, the group was up on the previous year. In 2020, in the same period, earnings per share were $1.70. So there was an increase of 28.23%.
McDonald's is one of the companies that pay dividends to its shareholders. Generally, the company pays 4 dividends each year (excluding specials). Here are the details of those paid for the 2021 financial year with the payment dates.
As of 15 March 2022, a dividend of $1.32 per share was paid. In addition, the share of the world's most famous fast-food company is of greater interest to investors and traders in the stock market. McDonald's is listed on the New York Stock Exchange. The company is part of the Dow Jones stock index. In 2021, it had a market capitalisation of approximately $180.48 billion.
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