Update 6 November
Apple’s iPhone Sales Hold Steady
Apple reported solid fourth quarter 2023 results on November 2, 2023, with strong growth in its services business and resilient iPhone sales despite the challenging economic environment.
Revenue was $89.5 billion, down slightly from the year-ago quarter, but net quarterly profit increased 11.2% to $23.0 billion. Diluted earnings per share were $1.46, also up 11.2%. iPhone revenue was $43.5 billion, down 3.9% year-over-year, but iPhone unit shipments were up 1.0% to 54.2 million units. Services revenue was $21.5 billion, up 8.3% year-over-year, and now accounts for over 21% of Apple’s total revenue. Other product highlights included Mac revenue of $11.5 billion, up 25.6% year-over-year, and iPad revenue of $7.9 billion, up 2.1% year-over-year. Wearables, home, and accessories revenue was $9.6 billion, up 2.6% year-over-year.
Apple’s strong services performance was driven by continued growth in its App Store, Music, TV+, iCloud, and AppleCare+ businesses. The company now has over 1 billion paid subscriptions across its services platform, nearly double the number of subscriptions it had three years ago.
McDonald’s Corporation (NYSE: MCD)
McDonald’s (MCD) reported strong third-quarter 2023 results on November 3, 2023, with global Systemwide sales increasing 11% and global comparable sales of nearly 9%. The company’s digital sales remained strong, with Digital Systemwide sales in the top six markets representing over 40% of their Systemwide sales.
The company’s performance was driven by strong performance across all segments, with the United States, International Operated Markets, and International Developmental Licensed Markets all reporting comparable sales growth. The company’s digital sales continued to be a key driver of growth, with Digital Systemwide sales increasing 16% in the quarter.
McDonald’s digital sales have been a key driver of growth for the company in recent years. In the third quarter, Digital Systemwide sales in the top six markets reached nearly $9 billion, representing over 40% of their Systemwide sales. The growth was driven by strong demand for the company’s mobile app and online ordering platform. McDonald’s has also been expanding its menu in recent years to attract new customers and meet the changing needs of existing customers. In the third quarter, the company launched a number of new menu items, including the McCrispy Chicken Sandwich and the Cactus Plant Flea Market Box. These new menu items have been well-received by customers and have helped to drive sales growth.
Anheuser-Busch InBev (JSE: ANH)
Anheuser-Busch InBev (AB InBev), the world’s largest brewer, released its third quarter 2023 results on October 31, 2023. The company reported revenue growth of 5.0% and normalized EBITDA growth of 4.1%.
The continued recovery of the on-premise channel and premiumization trends were key drivers of AB InBev’s top-line growth. The on-premise channel, encompassing bars and restaurants, was particularly strong in the quarter, growing by 11.8%. Premiumization, which is the trend of consumers drinking more expensive beers, also supported top-line growth. Total volume declined by 3.4% in the quarter, with own beer volumes down by 4.0% and non-beer volumes up by 1.4%. The decline in own beer volumes was primarily due to a softer industry and challenging macroeconomic conditions in some markets, particularly the US.
AB InBev’s global brands, Budweiser, Stella Artois, Corona, and Michelob Ultra, continued to grow strongly in the quarter, with combined revenues up by 15.1% outside of their respective home markets. This growth was driven by strong demand in emerging markets and premiumization trends.
AB InBev’s digital platforms continue to gain traction, with the monthly active user base reaching 3.4 million users and over 125 million USD of revenue generated by the company’s digital direct-to-consumer ecosystem. BEES is a B2B digital platform that connects AB InBev with its customers and suppliers.
Sources: 9to5Mac; Yahoo Finance; Monyweb; Reuters; CNBC; Seeking Alpha
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