The casino opened a bit jiggy yesterday (it didn’t last) on month-end window dressing and the alleged “blow-out” earnings of another Dow component. This time it was McDonald’s, which posted a sizzling “adjusted” earnings gain of 22%.
Except there was absolutely nothing to all the ballyhoo. Sales actually decreased by 9% versus the year ago quarter, and save for the dollar’s swoon last year (now reversing rapidly) sales would have been down by 15%.
Never mind say the sell-side numbers wizards. The revenue plunge was due to “strategic repositioning” by the company—-meaning it has sold off company stores to franchisees, thereby shrinking its top line.
Fine. Management claims that was all done to improve operating performance.
But it didn’t.