McDonald's income rises 9% in 2010
Jan. 24, 2011
by Eric Schroeder
OAK BROOK, ILL. — Net income at McDonald’s Corp. totaled $4,946.3 million in fiscal 2010, equal to $4.58 per share on the common stock, up 9% from $4,551 million, or $4.11 per share, in fiscal 2009. Full-year results benefited from a strong fourth quarter in which income rose 2% behind additions to the McCafe coffee lineup and continued demand for the McRib sandwich.
Revenues for the year climbed 5% to $16,233.3 million, up from $15,458.5 million in fiscal 2009.
During the fourth quarter ended Dec. 31, net income totaled $1,242.3 million, or $1.16 per share, up from $1,216.8 million, or $1.11 per share, and revenues were $4,170.2 million, up 3% from $4,030 million in the same period a year ago.
“We generated strong sales and delivered profitable market share growth, along with higher global revenues, operating income and earnings per share,” said Jim Skinner, chief executive officer. “McDonald’s continued success demonstrates that our Plan to Win works in any environment and has positioned us to continue our performance in 2011.”
Global comparable sales rose 5% in the fourth quarter, with sales in the United States up 4.4%, sales in Europe up 3.4% and sales in Asia/Pacific, Middle East and Africa up 5.5%.
McDonald’s said sales in the United States benefited from an emphasis on driving customer traffic, menu innovation and compelling value. During the fourth quarter, the company featured Chicken McNuggets and McRib on the menu, and drove brand loyalty and enhanced the customer experience with the Monopoly promotion and the introduction of the Caramel Mocha to the McCafe line-up.
“McDonald’s continues to operate from a position of strength,” Mr. Skinner said. “Our recurring cash flow and strong balance sheet allow us to invest appropriately in our business and return significant amounts of cash to our shareholders. In 2011, we plan to invest about $2.5 billion of capital — roughly half dedicated to opening approximately 1,100 new McDonald’s restaurants and the other half allocated to investing in our existing locations, including reimaging.”