Image Courtesy of: Dot Com Dot Au Image Library

McDonald's Profits Soar

published  First Published: 23/01/2010
Article written by: Nigel Brookson
The global financial crisis has turned many people to fast food restraunts, thinking that it's a cheaper alternative to buying groceries.
So it is not surprising then that McDonald's reported a world wide net profit of $US1.216 billion ($A1.35 billion) for the final quarter of 2009, up from $US985 million ($A1.09 billion) the previous year.
Earnings per share of $US1.11 topped the consensus analyst forecast of $US1.02.
The head office of McDonalds said revenue totalled $US5.973 billion ($A6.62 billion), up seven per cent from a year earlier but slightly less than expected by most analysts.
For all of 2009, net profit rose six per cent to $US4.551 billion ($A5.05 billion), or $US4.11 in earnings per share, topping the $US3.97 expected.
Full-year revenue fell three per cent to $US22.745 billion ($A25.23 billion), while the company served 60 million customers per day, up two million per day from the previous year.
"McDonald's 2009 results reflect the broad-based strength of our global business," Jim Skinner, McDonald's chief executive, said on Friday.
"McDonald's profitability increased as we marked our sixth consecutive year of positive comparable sales in every geographic segment and generated higher global revenues, operating income and earnings per share in constant currencies - all tremendous accomplishments given the tough global economy," he said.
Comparable sales - sales in restaurants in operation at least 13 months - climbed 3.8 per cent in 2009, driven by a 2.6 per cent increase in the United States.
The company, headquartered in Oak Brook, Illinois, said its US sales throughout 2009 had outpaced the overall quick-service industry and the firm had picked up market share, with easing commodity costs helping to boost fourth-quarter results.
In European operations, Britain, France and Russia led growth in operating income in the fourth quarter.
Asia/Pacific, Middle East and Africa posted double-digit operating income growth driven by results in Australia, expansion in China and operating efficiencies and lower commodity costs in many markets, the company said.
The fourth-quarter results marked an improvement over the third quarter, when the hamburger chain posted a six per cent rise in profit and a drop in sales.
"As we begin 2010, McDonald's January global comparable sales trend remains positive," Skinner said.


business tags



If you enjoyed reading this article on McDonald's Profits Soar; share it with your friends & the world.



Comments made on McDonald's Profits Soar