McDonald's boosts profits despite sluggish economy
(AFP) – 4 days ago
NEW YORK — McDonald's on Friday reported better-than expected profits for the third quarter, as the fast-food giant weathered a sluggish global economy.
McDonald's posted a nine percent increase in net income from a year earlier, to $1.51 billion, and a 12 percent hike in earnings per share, to $1.45. The results were better than analyst forecasts of $1.43 per share.
Revenues of $7.17 billion were 14 percent higher than the third quarter of 2010, boosted by 4.4 percent sales growth in the key US market and 4.9 percent in Europe.
"The investments we are making to optimize our menu, modernize the restaurant experience and broaden McDonald's accessibility with ongoing convenience and value platforms are driving profitable market share growth," said chief executive Jim Skinner in a statement.
The company cited investments in premium beverages in its McCafe menu, and "wholesome" breakfast offerings like oatmeal and its Egg McMuffin breakfast sandwich.
In Europe, it said it scored a 15 percent increase in operating income, or six percent in constant currency, helped by promotions and modernizing its restaurants, especially in France, Russia, Germany and Britain.
"As we enter the final quarter of 2011, our global comparable sales remain strong with October comparable sales expected to be up 4.0 percent to 5.0 percent," Skinner said.
In late September the company also decided to increase its quarterly dividend by 15 percent to 70 cents a share, starting from the fourth quarter.
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