McDonald’s and GM Boast Positive Q4 Earnings to End 2022 on a High Note

Ba Da Ba Ba Bah, McDonald’s is lovin’ their Q4 earnings.

The golden arches were shining bright when McDonald’s reported their fourth-quarter earnings results Tuesday, January 31, 2023. Mcdonald’s beat Wall Street expectations of $5.75 billion in revenue with a reported $5.93 billion. U.S. same-store sales were up, and McDonald’s adjusted earnings per share were $2.59 versus the $2.44 expected.

Higher menu prices helped drive McDonald’s Q4 success. A successful marketing collaboration with Cactus Plant Flea Market had customers lining up in the late fall for limited-time Adult Happy Meals. And the fan favorite, the McRib, made its limited return in Q4 to add to McDonald’s strong sales.

Things were also looking bright in Detroit, where GM smashed expectations for Q4 earnings with $33.58 billion in revenue to close out a strong 2022. Looking ahead to 2023, GM predicts a strong sales year as supply-chain issues resolve and inventory levels return to normal.

Nikolay Osadchiy, Associate Professor of Information Systems & Operations Management at Emory’s Goizueta Business School, offered some perspective on these positive Q4 earning results and the factors driving them.

Nikolay’s Thoughts

“Financial markets have been doing well recently, and there are several factors explaining that in my opinion. First, supply chain pressures are easing and trade flows are starting to normalize, so that’s definitely great news, and markets typically react well to supply chains working smoothly.

The second reason is that the American consumer is proving to be fairly resilient. Even though there are some recent cuts in consumer spending that are observed in the data, still, consumer spending remains pretty high. And the third, of course, is that inflationary pressures appear to be easing as well, and the speed of rate hikes by the Federal Reserve is decreasing.

So that said, when we start thinking about individual stocks, the picture is a little bit more nuanced. For example, General Motors recently announced earnings and they beat expectations, the stock price increased. To me, this is mostly the story of supply and demand, so there was lots of residual unmet demand, people wanted to buy cars, but they couldn’t because of various shortages of inventory, of semiconductor chips. Now that supply chains have caught up, people can finally buy cars, and that translates to GM revenue.

Compare that with McDonald’s, for example. McDonald’s in my opinion is really the story of consumer resilience in the face of higher prices. So, despite increased prices, consumers still buy McDonald’s products and that translates to their revenue. Third, just yesterday, Meta had announced earnings and they beat on revenue, but that to me is mostly a story of cost-cutting on Meta’s side and also share buybacks.

So there is a variety of reasons that contribute to market movements. Going back to supply chains, yes, financial markets value supply chains. They like supply chains operating smoothly without glitches, and certainly, that has been factored in, but at the same time, there are a couple of other very significant factors in play, such as inflation, such as consumer spending, rising prices, and Fed policy. So what the net effect is going to be, remains to be seen.”

Follow us on social media for the latest updates in B2B!

Image

Latest

Ellendale AI Data Center
Applied Digital Ellendale AI Data Center: April 2025 Update
May 1, 2025

Progress continued throughout April at Applied Digital’s Ellendale AI Data Center, as construction efforts advanced across multiple fronts. With favorable weather conditions and a clear focus on critical infrastructure, the ELN02 site remains on track to support the growing demands of high-performance computing (HPC) and artificial intelligence. Key developments from April include: Metal jacketing installation…

Read More
Produce distribution
The Produce Distribution Industry Needs Flexibility, Empathy, and a New Generation of Talent
May 1, 2025

As inflation reshapes consumer habits and restaurant margins tighten, the produce distribution industry is under more pressure than ever. This high-touch, low-margin, logistics-heavy business is facing rising freight costs, labor shortages, and evolving food safety standards — all while trying to deliver perishable products across a fragmented national landscape. Between 2020 and 2024, the…

Read More
PGA Coach+
Unlocking Opportunity: Why PGA Coach+ Is a Smart Move for Growing Golf Instructors
May 1, 2025

In today’s competitive golf instruction landscape, standing out isn’t just about skill—it’s about visibility and value. PGA Coach+ is helping instructors amplify their reach by offering unlimited leads and a streamlined way to expand their client base. For many, the decision comes down to simple math: one new student can pay for the investment multiple…

Read More
auction
Bid, Play, Support: Rounds 4 REACH Auction Returns to New England
May 1, 2025

Golfers across New England have a unique chance to turn their passion for the game into purpose with the return of the Rounds 4 REACH Online Auction. From exclusive access to iconic clubs like The Country Club in Brookline to teeing off alongside seasoned PGA professionals, this event offers more than just a day on…

Read More