Can MCD sustain its revenue growth trend into 2025?

**McDonald's faces challenges in sustaining its revenue growth trend into 2025**, as evidenced by the decline in net income and revenue growth rates. Here's an analysis to support this conclusion:

1. **Recent Performance**: McDonald's has experienced a decline in net income and revenue growth rates. The most recent data shows a net income of $1.87 billion and total revenue of $5.96 billion, with a diluted EPS of $2.6. The net income has seen a year-over-year growth rate of -3.16%, while the total revenue has declined by 3.47%.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|MCD|MCD.N|Mcdonald's|2024 Q2|-12.467532467532468|-0.10774203478528552|-11.111111111111114|169|
|MCD|MCD.N|Mcdonald's|2024 Q3|-2.675873974967631|2.7047220561864913|-1.2618296529968467|169|
|MCD|MCD.N|Mcdonald's|2024 Q4|-1.0789602746444336|-0.280986575085857|0|169|
|MCD|MCD.N|Mcdonald's|2025 Q1|-3.162260238465526|-3.4689576916842277|-2.2556390977443628|169|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|MCD|MCD.N|Mcdonald's|2024 Q2|-12.467532467532468|2.022E9|169|
|MCD|MCD.N|Mcdonald's|2024 Q3|-2.675873974967631|2.255E9|169|
|MCD|MCD.N|Mcdonald's|2024 Q4|-1.0789602746444336|2.017E9|169|
|MCD|MCD.N|Mcdonald's|2025 Q1|-3.162260238465526|1.868E9|169|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|MCD|MCD.N|Mcdonald's|2024 Q2|-0.10774203478528552|6.49E9|169|
|MCD|MCD.N|Mcdonald's|2024 Q3|2.7047220561864913|6.873E9|169|
|MCD|MCD.N|Mcdonald's|2024 Q4|-0.280986575085857|6.388E9|169|
|MCD|MCD.N|Mcdonald's|2025 Q1|-3.4689576916842277|5.955E9|169|

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|MCD|MCD.N|Mcdonald's|2024 Q2|-11.111111111111114|2.8|169|
|MCD|MCD.N|Mcdonald's|2024 Q3|-1.2618296529968467|3.13|169|
|MCD|MCD.N|Mcdonald's|2024 Q4|0|2.8|169|
|MCD|MCD.N|Mcdonald's|2025 Q1|-2.2556390977443628|2.6|169|

2. **Market Conditions**: The fast-food industry has been impacted by consumer trends and external factors. McDonald's has faced challenges such as a deadly E. coli outbreak and trade conflicts that have influenced consumer sentiment and restaurant traffic. These factors could continue to affect McDonald's performance in the coming years.
3. **Strategic Initiatives**: Despite the challenges, McDonald's has been proactive in addressing growth through strategic initiatives. The company's "Accelerating the Arches" strategy aims to evolve with customer needs and establish strong platforms for long-term growth. Additionally, the introduction of a value-based pricing strategy and promotional activities, such as the $5 value meals, indicate a focus on affordability and customer engagement.
4. **Future Outlook**: McDonald's plans to open 2,200 new restaurants in 2025, which could contribute to future growth. However, the success of these new locations and the overall sustainability of revenue growth will depend on market acceptance and the effectiveness of the company's strategic initiatives.
5. **Analyst Expectations**: The average analyst price target for McDonald's is $332.45, with a consensus rating of "Buy". This suggests that analysts are optimistic about the company's prospects, but it remains to be seen if the revenue growth trend can be sustained based on current performance indicators.

In conclusion, while McDonald's has implemented strategies to address growth and has a positive long-term outlook, the immediate indicators of declining net income and revenue growth rates suggest that sustaining this trend into 2025 may be challenging. The company's ability to execute its strategic plans and adapt to market conditions will be crucial in determining its future revenue growth trajectory.