McDonald's income up 24% in quarter
April 22, 2008
by Eric Schroeder
OAK BROOK, ILL. — Net income for McDonald’s Corp. rose 24% for the quarter ended March 31 behind strong global comparable sales.
Net income for the quarter was $946.1 million, equal to 81c per share on the common stock, compared with $762.4 million, or 62c per share, during the same quarter of the previous year. Total revenue for the quarter was $5,614.8 million, up 6% from $5,292.7 million during the same quarter of the previous year.
"We delivered strong first-quarter results driven by comparable sales and guest count increases across all geographic segments and outstanding international operating performance," said Jim Skinner, chief executive officer. "During the quarter, we welcomed more guests into our restaurants around the world — serving 2.5 million more customers per day compared with the same period in the prior year — and grew operating income by 24%. These results are a clear indication that our Plan to Win continues to work."
Overall, global comparable sales increased 7.4% during the quarter. In the United States, comparable sales were up 2.9% and operating income increased 5%. The company attributed success in the United States to strategies of everyday affordability, menu variety and convenience. Also during the quarter there were double-digit revenue and operating income growth in Europe as well as the Asia/Pacific, Middle East and Africa region. European revenue rose 23% during the quarter.
"McDonald’s ongoing financial performance is a testament to the strength of our business model and the effectiveness of the Plan to Win," Mr. Skinner said. "We ran our business for the long-term with sound strategies to deliver sustained profitable growth for our system and our shareholders. During the first quarter we continued to strengthen shareholder returns by returning nearly $2.5 billion through dividends and share repurchases combined."