As McDonald’s prepares to announce its fourth quarter earnings on January 30, its franchisees are predicting what’s to come in 2018. And according to CNBC, franchisees are expecting the brand’s new dollar menu to boost sales in the first half of the year. However, they’re worried about long-term results.
A recent survey by Nomura that’s cited by CNBC reflects the thoughts of 26 U.S. McDonald’s franchisees who own about 286 locations in total. They’re predicting that same-store sales rose roughly four percent in the fourth quarter of 2017, and are crediting momentum to new signature burgers and drink promotions. That momentum was especially evident in the second half of last year, and franchisees are hopeful that it will continue building as 2018 gets fully underway.
Mark Kalinowski, an analyst with Nomura, added to the results from its McDonald’s franchisee survey, saying, “While McDonald’s U.S. business likely outperformed many of its quick-service counterparts during Q4 in terms of same-store sales growth, perhaps consensus expectations for this key business segment may have gotten a touch too high in the near term.”