Global Comparable Sales Drive Strong Second Quarter Results at McDonald's
In Europe, comparable sales increased 7.4% and operating income rose 29% as emphasis on delivering an improved customer experience along with unique marketing and signature menu options drove performance.
24/07/08 McDonald’s Corporation has announced strong operating results for the second quarter, driven by global comparable sales growth of 6.1%.
"Our strategic focus on putting the customer first in everything we do continues to yield outstanding operating results," said Chief Executive Officer Jim Skinner. "For the quarter, we grew comparable sales and guest counts across all geographic segments and delivered increased profitability. These results are a testament to the strength and resilience of McDonald’s Plan to Win."
McDonald’s reported the following second quarter highlights:
• Global comparable sales increased 6.1%
• Growth in consolidated Company-operated and franchised restaurant margins for the tenth consecutive quarter
• Earnings per share from continuing operations of $1.04, a 44% increase (35% in constant currencies) over the prior year, after adjusting for the impact of the 2007 Latin America transaction. Second quarter 2008 earnings include a $0.10 per share gain from the previously announced sale of the Company’s minority interest in Pret A Manger
• The Company repurchased 13.3 million shares of its stock for $788 million and paid $422 million in quarterly dividends
Jim Skinner continued, "Our ongoing performance demonstrates that McDonald’s is a trusted and familiar brand offering value, convenience and choice worldwide. We’re operating from a position of strength with double-digit operating income growth in Europe and Asia/Pacific, Middle East and Africa and solid quarterly results in the U.S."
For McDonald’s U.S., comparable sales were up 3.4% and operating income increased 6% for the quarter. The U.S. business continues to increase sales and guest counts through initiatives that provide value and variety to the consumer. The four key growth strategies of chicken, breakfast, beverages and convenience drove results with the nationwide launch of the Southern Style Chicken Biscuit and Sandwich and locally relevant beverage promotions.
In Europe, comparable sales increased 7.4% and operating income rose 29% (13% in constant currencies) as emphasis on delivering an improved customer experience along with unique marketing and signature menu options drove performance. Europe’s three-tier menu offerings, innovative new products and restaurant reimaging continue to give customers even more reasons to visit McDonald’s.
Asia/Pacific, Middle East and Africa delivered strong results, led by Australia and China along with broad-based strength throughout the segment. Second quarter comparable sales increased 8.8%, driving operating income up 37% (22% in constant currencies). Throughout Asia/Pacific, Middle East and Africa, McDonald’s everyday value, convenience and appealing product offerings are fueling results.
Skinner added, "Around the world, McDonald’s is powered by the contributions of a dedicated System of owner/operators, suppliers and employees who are committed to satisfying every customer, every time. I am confident that our collective focus on delivering great-tasting quality food at a compelling value will continue to drive McDonald’s momentum."
