Fast-food chain McDonald’s posted favorable results for Q2 brought about by increase in sales from every part of the world. Global comparable sales, a measure based on stores that have been open for at least a year, were higher by at least 4.4% in all regions except in the US with an increase of 3.5%.
Net income was reported at $0.98 per share, even with a $0.09 per share negative impact from foreign exchange and a 1 cent extra income from the sale of Redbox Automated Retail, LLC. Absent the incremental gain, earnings are in line with analyst expectations of $0.97.
Revenues saw a 7% drop from the same period in 2008 – $6bn vs. 2008’s $5.6bn while net income was lower by 8%, $1.1bn vs. $1.2bn.
The company’s CEO Jim Skinner said in the report: “As consumers find themselves more cash-strapped and time-challenged, they continue to count on McDonald’s for value, convenience and variety across our menu. The ongoing appeal of McDonald’s is a testament to the dedication of our owner/operators, suppliers and employees who provide an exceptional restaurant experience for each customer, every time.”
McDonald’s U.S. contributed to overall earnings through an operating income higher by 5% citing favorites such as the Big Mac, beverage value offerings and the McCafe premium coffee line-up as positive factors. (I hope to know more about the contribution of the McCafe product line in its conference call.) In Europe, U.K., France and Russia gave strong performances. Meanwhile, the regions of Asia/Pacific, Middle East and Africa (APMEA), Australia gave the strongest performance with a 34% increase in its operating income.
Jim Skinner concluded his statement by saying, “I am pleased with McDonald’s results and remain confident in our outlook for the year. As we begin the third quarter, we expect to report July consolidated comparable sales similar to or better than June.”
The official earnings results may be viewed HERE.