McDonald's Q4 2024: Sales and Expansion
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Questions and Answers

What was the primary factor that negatively impacted McDonald's US sales in Q4 2024, according to the text?

An E.coli outbreak in October that led to the temporary halting of Quarter Pounder sales in roughly a fifth of US restaurants.

Despite a decline in US sales, McDonald's stock rose by 5%. Explain why this might have happened, based on information from the text.

McDonald's stock rose due to booming international sales and plans for further international expansion, offsetting concerns about the US market.

How many new restaurants does McDonald's plan to open globally in the upcoming year, and what portion of these openings is allocated to the US?

McDonald's plans to open approximately 2,200 restaurants globally, with about 1/4 of these openings in the US.

McDonald's has shut ~900 branches in the US from 2015 to 2021. What is the primary reason the text suggests for this reduction in US store count?

<p>The text suggests it's part of a strategic shift to focus on international expansion while trimming the US store portfolio.</p> Signup and view all the answers

What specific sales strategy, aimed at increasing customer loyalty, showed positive results for McDonald's in 2024?

<p>The loyalty scheme, Rewards, saw sales to members increase by 30% in 2024.</p> Signup and view all the answers

Referencing Sundar Pichai's comments, what is DeepSeek and why were they mentioned during Alphabet's earnings call?

<p>DeepSeek is a Chinese AI company. They were mentioned because their AI model has influenced perceptions of what is possible in the AI field for the price.</p> Signup and view all the answers

McDonald's aims to reach 50,000 restaurants by the end of 2027. What does the text state about this period of expansion?

<p>The text states this would mark McDonald's fastest ever period of global expansion.</p> Signup and view all the answers

Name 3 sales strategies McDonald's used to try to bolster sales.

<p>The $5 value menu, the loyalty scheme, and the rerelease of the McRib sandwich.</p> Signup and view all the answers

According to Demis Hassabis, what is one specific way DeepSeek might have understated the true cost of their AI model's development?

<p>By only reporting the cost of the final training run, and not the exploratory runs or tests.</p> Signup and view all the answers

What benefit does Mobileye bring to the partnership with Lyft?

<p>Mobileye will supply the driver-assistance technology to enable the self-driving capabilities of the robotaxis.</p> Signup and view all the answers

In the context of AI model development, what does Hassabis imply by mentioning DeepSeek's reliance on 'Western models'?

<p>That DeepSeek may have fine-tuned their model using outputs from existing Western models.</p> Signup and view all the answers

Besides Mobileye, what other company is involved in Lyft's robotaxi plan, and what is their role?

<p>Marubeni, and they will supply the fleet of vehicles.</p> Signup and view all the answers

Explain what Hassabis meant when he stated, 'Gemini is more efficient than DeepSeek in terms of its training to performance or its cost to performance.'

<p>That Gemini achieves better performance for the amount of training it receives, or for the cost of that training, compared to DeepSeek.</p> Signup and view all the answers

What is one similarity and one difference between Lyft and Uber's approach to launching self-driving taxi services?

<p>Similarity: both are launching self-driving taxi services. Difference: Lyft is partnering with Mobileye, while Uber expands its partnership with Waymo.</p> Signup and view all the answers

What specifically does Hassabis mean when he states, 'we don't see any silver-bullet new technologies, techniques that we haven't seen before or haven't invented before'?

<p>DeepSeek's advances are based on improvements to existing approaches rather than novel breakthroughs.</p> Signup and view all the answers

What does the passage suggest about Pinterest's financial performance in 2024 compared to previous years?

<p>Pinterest achieved its highest profit in 2024 compared to previous years.</p> Signup and view all the answers

How is Sherwood Media, LLC related to Robinhood Markets, Inc., according to the text?

<p>Sherwood Media, LLC is a fully owned subsidiary of Robinhood Markets, Inc.</p> Signup and view all the answers

Where in the United states could you expect to find self-driving ride-hailing services?

<p>Dallas, Austin, and Atlanta</p> Signup and view all the answers

Flashcards

McDonald's International Sales Q4 2024

McDonald's Q4 2024 international same-store sales increased.

McDonald's US Sales Q4 2024

US comparable sales decreased by 1.4% in Q4 2024.

Impact of E.coli Outbreak

An E.coli outbreak impacted sales by temporarily halting Quarter Pounder sales in some US restaurants.

McDonald's Rewards Impact

The loyalty program increased by 30% in 2024.

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McDonald's Expansion

McDonald's strategy involves trimming US stores while expanding internationally.

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2025 Restaurant Openings

McDonald's plans to open approximately 2,200 restaurants, with a focus on international markets.

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McDonald's 2027 Goal

McDonald's aims to have 50,000 restaurants by the end of 2027.

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DeepSeek's Model

A Chinese company whose AI model has upended much of what American AI firms thought was possible for the price.

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Training Cost Misrepresentation

Claims of innovation might be overstated by focusing solely on the final training run cost and overlooking the preliminary exploration, training, and testing phases.

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Reliance on Existing Models

Relying on existing models (e.g., Western models) for distillation or fine-tuning against their outputs.

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Application vs. Innovation

They've skillfully applied known techniques without introducing fundamentally new AI innovations.

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Gemini's Efficiency

Gemini is more efficient than DeepSeek in terms of its training to performance or its cost to performance.

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Lyft's Robotaxi Launch

Lyft is launching a robotaxi service in Dallas in partnership with Mobileye.

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Mobileye's Role

Mobileye's driver-assistance technology will power Lyft's robotaxis.

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Marubeni's Contribution

Marubeni will supply the fleet of vehicles for Lyft's robotaxi service.

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Uber's Autonomous Expansion

Uber plans to expand its partnership with Waymo to deploy robotaxis in Austin and Atlanta.

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Lyft's Earning Report

Lyft anticipates reporting its Q4 earnings.

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Pinterest's Profit in 2024

Pinterest made $1.9 billion in profit in 2024.

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Study Notes

McDonald's Q4 2024 Results

  • McDonald's Q4 2024 international revenues saw same-store sales in overseas licensed markets climb 4.1% year-over-year, driven by the Middle East and Japan.
  • US comparable sales decreased by 1.4% in Q4, the largest decline in nearly half a decade.
  • The US sales decline was steeper than expected due to an E. coli outbreak in October that temporarily halted Quarter Pounder sales in roughly a fifth of US restaurants.
  • Sales were not helped by a $5 value menu, the loyalty program (Rewards scheme sales up 30% in 2024), and the McRib sandwich rerelease.
  • McDonald's plans to expand internationally, with the majority of new restaurants opening outside the US.
  • The company's stock was increased by 5% despite stalling US sales because of overseas growth.
  • McDonald's plans to open approximately 2,200 restaurants globally in 2025, with about 1/4 in the US and IOM segments.
  • Over 1,600 restaurants are expected to open in the IDL segment, including about 1,000 in China.
  • McDonald's is on track to reach 50,000 restaurants by the end of 2027, marking its fastest period of global expansion.
  • From 2015 to 2021, McDonald's shut down approximately 900 branches nationwide in the US while expanding overseas.

Google's Assessment of DeepSeek

  • Sundar Pichai praised DeepSeek, acknowledging their "very, very good work".
  • Demis Hassabis tempered the praise, stating some claims are exaggerated and misleading.
  • Hassabis implied DeepSeek might have underestimated training costs by only reporting the final training run cost
  • DeepSeek seemed to have relied on Western models for distillation or fine-tuning.
  • Hassabis says there aren't any new silver-bullet technologies that Google hasn't seen or invented before, DeepSeek has just applied them well.
  • Gemini is more efficient than DeepSeek in terms of its training to performance or its cost to performance.

Lyft's Robotaxi Service

  • Lyft shares increased 4% after announcing plans to roll out self-driving robotaxis in partnership with Mobileye.
  • The robotaxi service will start in Dallas in 2025 and will allow riders to book autonomous rides through the Lyft app.
  • Mobileye's driver-assistance technology will power the robotaxis, and Marubeni will supply the fleet.
  • Lyft aims to expand the program to thousands of vehicles across multiple cities.
  • Uber plans to launch its self-driving service and to expand its partnership with Waymo to deploy robotaxis in Austin and Atlanta in early 2024.

Pinterest's Profit in 2024

  • Pinterest made $1.9 billion in profit in 2024, its most profitable year.

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Description

McDonald's Q4 2024 results show international growth, with a 4.1% increase in overseas licensed markets. US sales declined by 1.4% due to factors like an E. coli outbreak. The company plans to open 2,200 new restaurants globally in 2025, focusing on international expansion.

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