New menu items drive growth at McDonald's
October 21, 2010
by Eric Schroeder
OAK BROOK, ILL. — New menu items backed by strong promotional efforts contributed to higher sales and earnings at McDonald’s Corp. during the third quarter. Net income in the quarter ended Sept. 30 totaled $1,388.4 million, equal to $1.29 per share on the common stock, up 10% from $1,261 million, or $1.15 per share, in the same period a year ago.
Sales increased 4% to $6,304.9 million, fueled in part by sales of products like McCafe frappes and fruit smoothies.
“McDonald’s customer focus, menu innovation and the ongoing modernization of our restaurants continue to drive our business momentum,” said Jim Skinner, chief executive officer. “For the third quarter, we grew comparable sales and customer visits around the world and delivered increased profitability. As we continue to invest in our business and extend the McDonald’s brand, I am confident that we will create even more ways to satisfy consumers looking for high quality, great tasting food that’s convenient and affordable.”
McDonald’s said global comparable sales increased 6% during the third quarter, driven by a 5% gain in the United States, 4% increase in Europe and 8% gain in Asia/Pacific, Middle East and Africa.
For the nine months ended Sept. 30, net income totaled $3,704 million, or $3.42 per share, up 11% from $3,334.2 million, or $3 per share, in the same period a year ago. Sales in the nine months rose 6% to $17,860.5 million.