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Apr-23-2008Setback in Sales for McDonald's(topic overview)
CONTENTS:
- The world's largest restaurant chain said European revenue climbed 23 percent to nearly $2.4 billion, while quarterly revenues in Asia, the Middle East and Africa grew 24 percent to about $1 billion. (More...)
- The company noted that earnings in the latest quarter reflect a currency benefit of 5 cents a share. (More...)
- Continued growth in Australia and China contributed to a 9.4 percent sales upturn in the Asia/Pacific and certain other international markets, officials said. (More...)
- Analysts, on average, had been looking for a profit of 70 cents a share, according to Reuters Estimates. (More...)
- I'''m going to let Pete talk about the details but we feel good about where we are with the G&A; and our goal, of course, is to be more efficient and we achieved that in the first quarter and we feel good with what we have ahead of us for the year relative to the G&A.; And some of that is being contributed really by the Latin American transaction relative to reduced G&A; costs from that segment. (More...)
- So we'''ve been in breakfast, as you know, for 30-plus years and it'''s a great experience for our customers at that time and it continues to get better. (More...)
- Our important breakfast business continues to thrive. (More...)
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The world's largest restaurant chain said European revenue climbed 23 percent to nearly $2.4 billion, while quarterly revenues in Asia, the Middle East and Africa grew 24 percent to about $1 billion. Both geographic regions posted double-digit profit growth. In the U.S., same-store sales grew 2.9 percent during the quarter, but the company disclosed its comparable U.S. sales fell in March. That 0.8 percent decline was the first negative same-store sale figure in five years, analysts said. That news sent the company's stock down 18 cents to $58.49 in morning trading. [1] McDonald's reported profits of $946.1 million, or 81 cents per share, on sales of $5.6 billion, in the quarter, up 24.1% from profits of $762.4 million, or 62 cents per share, on sales of $5.3 billion in the first quarter last year.[2] McDonald's Corp. said first quarter profit was up 24 percent compared to last year's quarter, which translates into a net income of $946.1 million, or 81 cents a share, up from $762.4 million, or 62 cents a share, last year.[3] The world's largest restaurant chain operator posted net income of $946.1 million, or 81 cents per share, for the first quarter, up from $762.4 million, or 62 cents per share, a year earlier.[4] The Oak Brook, Illinois-based fast food company said it earned a first quarter net income of 81 cents per share, or $946 million, compared with a year earlier at 62 cents, or $762.4 million.[5]
For the quarter ending March 31st, the suburban Chicago company earned $946.1 million, or 81 cents per share. That's up from $762.4 million, or 62 cents per share, during the same period last year.[6] The Oak Brook-based company earned $946.1 million, or 81 cents per diluted share, in the first quarter ended March 31, compared with $762.4 million, or 62 cents per diluted share in the year-earlier quarter.[7] The world's largest restaurant chain operator had net income of $946.1 million, or 81 cents a share, in the first quarter, compared with year-earlier net income of $762.4 million, or 62 cents a share.[8] Net income in the fast-food giant's latest quarter jumped 24 percent to $946.1 million, or 81 cents a diluted share, from the year-ago quarter's $762.4 million, or 62 cents a share. Those per-share results, which were boosted to an extent by McDonald's repurchase during the quarter of $2 billion of its stock, landed well above the 70 cents a share analysts had been anticipating.[9] McDonald's Corp.' s (MCD) first-quarter net income rose 24% to $946.1 million, or 81 cents a share, from $762.4 million, or 62 cents, a year earlier, helped by international results.[10] The home of the Quarter Pounder today reported net income of $946.1 million, or 81 cents a share, compared with $762.4 million, or 62 cents, a year earlier, according to the earnings press release.[11] The Oak Brook, Ill. -based company on Tuesday reported first-quarter earnings of $946.1 million, or 81 cents a share, compared with $762.4 million, or 62 cents a share a year earlier, beating analyst estimates by 11 cents.[12] For the January-March period, the company earned $946.1 million, or 81 cents per share, it reported Tuesday. That's up from $762.4 million, or 62 cents per share, a year earlier.[13] The fast food behemoth easily topped Wall Street forecasts Tuesday when executives said it earned $946.1 million, or 81 cents per share, during the January-to-March period. That's up from $762.4 million, or 62 cents per share, during the same period last year.[14]
The company reported first-quarter net income of $946.1 million, or $0.81 per share. This compared to $762.4 million or $0.62 per share in the same quarter last year.[15]
In the first quarter, comparable sales increased 7.4%, consolidated company operated and franchise margins grew for the 9th consecutive quarter, and earnings per share were up $0.81, or were $0.81, a 31% increase from the first quarter last year.[16] Revenues from franchised and affiliated restaurants advanced 17% to $1.62 billion from $1.38 billion in the corresponding quarter prior year. The company said its first-quarter results were driven by comparable sales and guest count increases across all geographic segments and outstanding international operating performance.[17] For the quarter, global comparable sales increased 7.4%. The company said its first-quarter results were driven by comparable sales and guest count increases across all geographic segments and outstanding international operating performance. For the quarter, Europe and Asia/Pacific, Middle East and Africa both delivered double-digit revenue and operating income growth.[15]
Wall Street analysts were expected profit of 70 cents on revenue of $5.44 billion. "For the quarter, Europe and Asia/Pacific, Middle East and Africa both delivered double-digit revenue and operating income growth," the company said.[11]
JACKSONVILLE, Fla. (AP) - Rayonier Inc. (nyse: RYN - news - people )'s first-quarter earnings rose 16 percent on higher prices for rural land sales, the timber company said Tuesday. CLEVELAND (AP) - Paint maker Sherwin-Williams Co. (nyse: SHW - news - people ) said Tuesday its first-quarter profit dropped 30 percent on weaker domestic sales. MILFORD, Mass. (AP) - Analytical instrument maker Waters Corp. (nyse: WAT - news - people ) on Tuesday reported its first-quarter income grew 23 percent as sales rose. ST. LOUIS (AP) - Coal producer Peabody Energy Corp. (nyse: BTU - news - people ) said Tuesday its first-quarter profit fell 35 percent, hurt by a loss from discontinued operations and higher production and commodity costs. NORTHFIELD, Ill. (AP) - Stepan Co. (nyse: SCL - news - people ) said Tuesday its first-quarter net income surged 54 percent as the specialty and intermediate chemicals maker posted double-digit sales growth. PASADENA, Calif. (AP) - Construction services provider Jacobs Engineering Group Inc. (nyse: JEC - news - people ) said late Monday its fiscal second-quarter profit jumped 48 percent as revenue grew due to strong demand in its markets. FORT WAYNE, Ind. (AP) - Steel Dynamics Inc. (nasdaq: STLD - news - people ) said Tuesday its first-quarter profit jumped nearly 40 percent, as the price of the steel it produced exceeded the cost of the iron required to make the steel.[18] CHICAGO (AP) - McDonald's Corp. (nyse: MCD - news - people ) said Tuesday that its first-quarter profit rose 24 percent as the fast food company benefited from the weak U.S. dollar and strong global sales. MINNEAPOLIS (AP) - Insurer UnitedHealth (nyse: UNH - news - people ) said first-quarter profits rose 7 percent, missing Wall Street expectations, and it slashed its full-year profit outlook in part because of a drop-off in corporate customers.[18] Even as the American economy slows, expanding workforces in other countries are creating new customers for fast food and fattening up the burger-slinger's bottom line. The Big Mac maker beat Wall Street estimates with its first-quarter profits, announced Tuesday. Oak Brook, Ill. -based McDonald's (nyse: MCD - news - people ) said its double-digit profit increases were fueled by global comparable sales and currency benefits from a weaker dollar.[2]
The Associated Press April 22, 2008 - 8:34 a.m. CHICAGO - McDonald's Corp. says its first-quarter profit rose 24 per cent as the world's biggest fast food company benefited from the weak U.S. dollar and strong global sales.[13] CHICAGO (AP) -- McDonald's Corp. said Tuesday that its first-quarter profit rose 24% as the fast-food company benefited from the weak U.S. dollar and strong global sales.[19]
McDonald's, the world's largest restaurant company, said first-quarter profit rose more than analysts estimated after record European revenue gains outweighed the first drop in U.S. comparable-store sales in five years.[20] The world's largest chain of fast food restaurants, McDonald's, has posted first-quarter profit past analyst expectations, mainly due to strong overseas sales. The fast food giant has recorded its first drop in U.S. comparable-store sales in five years.[3]
CHICAGO (AP) — Strong international sales helped McDonald's Corp. post a 24 percent gain in first-quarter profit, but investors seemed nervous about the company's first monthly decline of U.S. same-store sales in five years.[14] LOS ANGELES/CHICAGO (Reuters) - McDonald's Corp (MCD.N: Quote, Profile, Research ) on Tuesday posted its first monthly sales decline at established U.S. restaurants in five years, overshadowing strong overseas sales that produced higher-than-expected first-quarter profit.[4]
CHICAGO (Reuters) - McDonald's (MCD) said Tuesday that monthly U.S. sales at established restaurants fell in March, the first monthly decline in five years, overshadowing higher-than-expected quarterly profit and strong overseas sales.[8]
Janna Sampson, co-chief investment officer at Oakbrook Investments in Lisle, Illinois, said McDonald's usually posts the industry's strongest numbers and noted that company executives said it gained market share during the first quarter. "That doesn't bode well for the other guys," Sampson said. McDonald's said sales at its U.S. restaurants open at least 13 months rose 2.9 percent in the first quarter but fell 0.8 percent in March.[4] Thanks. It appeared that in the first quarter in the U.S. that McDonald's same-store sales began to kind of close in with that of the industry; your share gains perhaps weren'''t as rapid as what they were in much of '''06 and '''07. I'''m wondering if the lift -- do you see that the lift to your sales from breakfast and late night in particular may be diminishing and we might be in one of those time periods where those platforms may not be the lift that they were, we'''re waiting for this beverage initiative to get to scale, and we just may have a lower growth rate in between? Thanks. David, first of all, when you look at our report this morning and when you consider the fact we are coming off of five consecutive years of growth, contributed by all day parts, including extended hours, and then the environment we are operating in here in the United States, because I'''m assuming your question is more about the United States as around the world, and when you look at those numbers and you look at the results, we have to be fairly pleased with where we find ourselves when you look at the backdrop of five years of success and the thresholds in terms of the law of big numbers and where we found ourselves.[16] Analysts interviewed by Thomson Reuters, formerly Thomson Financial, expected McDonald'''s to post earnings of 70 cents a share. The hamburger chain said its profit growth is primarily attributed to growth outside the U.S. Quarterly same-store sales internationally expanded 7.4% compared to 2.9% here in the states.[21] NEW YORK (Thomson Financial) - McDonald's Corp. (nyse: MCD - news - people ) Tuesday reported first-quarter earnings of $946.1 million, or 81 cents a share, 11 cents ahead of the mean estimate of analysts polled by Thomson Financial for a profit of 70 cents a share.[22] New York - McDonald's Corp said Tuesday that while U.S. sales were in a slump, Europeans more than helped the world's largest restaurant chain to beat out analysts' profit expectations with a 24- per-cent jump in earnings.[23] New Coffees Adding new coffees will spur U.S. sales in the second half of the year, John Glass, a Morgan Stanley analyst in New York, wrote today in a note. He rates the stock as ''overweight.'' McDonald's has added iced coffees to 10,000 of its almost 14,000 U.S. restaurants, where it plans to install counters selling cappuccino and lattes through 2009.[20]
Earnings rose to 946 million dollars for the first quarter, compared to 762 million dollars in the same period last year. U.S. sales at stores open at least 13 months fell 0.8 per cent, its second decline since March 2003.[23] Jim, you asked if you were to exclude the Latin transaction, G&A; would have been up only 3% constant currency, which considering the sales growth we think is a great accomplishment for the first quarter and as we had indicated in our annual guidance, we expect G&A; to be down in relative terms for the full year, so this was in line with our expectations and not only reflects the Latin transaction but the ongoing discipline and focus around controlling the G&A.; Your second question was around splitting out Latin and Canada and while we are not going to really get into a lot of those details, Latin was relatively flat with the first quarter last year, which considering it was 100% owned and we had all the company-operated restaurants last year, it was a few million dollars worse this year compared to last quarter but not terribly significant.[16]
Today we are reaping the benefits of our disciplined customer centered approach to managing our business. This approach is reflected in how we continue to connect with customers to drive sales growth in each area of the world, how we operate our restaurants and collaborate with suppliers to deliver solid margin performance, how we balance our ownership mix to achieve greater local relevance and a more stable revenue stream, and how we leverage the strength of our cash flow and balance sheet to further build our business and return a substantial amount of cash to shareholders. Each of these elements requires a long-term focus to sustain our momentum but it all starts with building greater consumer relevance to drive increased visits and sales. Our results for the quarter continued to prove that this is the right approach for McDonald's.[16] "As we've seen before, we believe our U.S. business is not recession-proof, but it is recession resistant," Skinner said. "That's why we are confident in our ability to manage through these economic times." Investors said they were pleased with the company's performance — particularly amid a gloomy environment for food companies struggling with rising food prices — but said they expected short-term focus to be on U.S. comparable sales. "Aside from this data point, overall business momentum appears very strong as (McDonald's) continues to flex its global strength and capital muscle," Goldman Sachs analyst Steven T. Kron wrote to investors a research note.[14] Global same-store store sales grew 5.7 percent in January and 11.7 percent in February. Lehman Brothers analyst Jeffrey Bernstein wrote in a note to investors that he expects strong sales in Europe and emerging markets. However he said that McDonalds focus on low-priced meals could pressure margins. Performance has been fueled in the U.S. primarily by its breakfast, coffee, and value menu offerings.[24]
NEW YORK - McDonalds Corp. expects to show a quarterly profit on Tuesday buoyed by growing global as sales as investors watch closely to see how the U.S. economic downturn has affected the biggest food retailer by revenue.[24] NEW YORK - McDonalds Corp. reported better than expected profit growth for the first quarter on Tuesday on rising global sales. Get stories by e-mail on this topic.[5]
Europe in fact generated 42 per cent of McDonald's first quarter sales and 39 per cent of operating profit.[23]
For the full year the company forecast domestic cheese costs to increase 13%-14%, chicken 5%-6% and beef be relatively flat. No single commodity materially impacts its profit margins, chief financial officer Peter Bensen said. In the first quarter McDonald's spent about $2 billion buying back its stock, lowering diluted shares outstanding by about 5%.[25] As developing economies continue to progress, inflated workforces will drive breakfast and drive-through sales. Those markets have been a generation behind the American markets for McDonald's, a fundamental long-term opportunity for investors. McDonald's also announced that it had repurchased $2.0 billion of its common stock in the quarter. They were opportunistic, said Speiser. He explained that the company had a share repurchase program through which it could choose to operate more aggressively if the stock traded below a desired price point.[2] Same-store sales rose 11.1% in Europe and 9.4% in the Asia/Pacific, Middle East and Africa segment. The company also repurchased $2 billion shares of its stock during the quarter.[8] Revenue in Europe rose 23% to almost $2.4 billion, fueled by an 11% increase in same-store sales.[12] For the quarter, Europe's revenues rose 23% to nearly $2.4 billion on an 11.1% comparable sales increase.[17] "Europe's revenues rose 23% (11% in constant currencies) during the quarter to nearly $2.4 billion, fueled by an 11.1% comparable sales increase - the highest in the segment's history."[11]
In Asia/Pacific, Middle East and Africa, comparable sales rose 9.4%, boosting the segment's quarterly revenues by 24% to over $1 billion.[17]
Revenue rose 6% to $5.6 billion from $5.3 billion as global same-store sales grew 7.4%.[25]
The upturn, which McDonald's said "represent the power of the company's global restaurant operations," came on revenues that grew a more modest 6 percent, to $5.61 billion from $5.29 billion.[9] The company's revenue climbed 6.1 percent to a strong $5.61 billion. The company also plans to install coffee bars selling lattes, cappuccinos, mochas and other drinks at all its U.S. locations within the next two years, which amounts to the most significant change in McDonald's menus in its recent history.[3]
Weak U.S. demand for McDonald's has taken some of the shine off the company's quarterly figures, which beat Wall Street forecasts. For its January to March period, McDonald's said net income grew to $946.1m, up from $762.4m a year earlier, lifted by overseas growth.[26] Investors have been waiting to see how much damage the U.S. economy's weakness would cause for the company's more mature and slower-growing domestic business. McDonald's did disclose that "comparable-store" sales -- those at outlets open at least a year -- were "slightly negative" in March, but it also said it expects those sales to return to positive growth in April.[9] U.S. sales fell in March for the first time in five years. The fast-food chain forecast an improvement in its U.S. business in April, and is forecasting same-store sales will rise by 2% to 2.5%. The sluggish figures show that even McDonald's, with its focus on budget meals, is suffering as the U.S. economy is battered by a weak housing market, shrinking employment and tighter lending conditions.[26] Speiser explained that comparable sales were down in March - the first negative comparable sale in many years - due to the Easter shift. The Easter holiday occurred earlier this year than usual which had a negative impact on drive-through sales. During the spring, he said, people go out shopping for spring and summer clothes and more likely to stop at a McDonald's drive-through. Since Easter occurred early when the weather was still cold, people were not as likely to be out shopping, he said. Speiser added that two-thirds of McDonald's U.S. sales are derived from its drive-through operations.[2] The quarter was marked by the first decline in monthly U.S. comparable sales in five years -- down 0.8% in March -- an indication that even the fast-food giant isn't immune to the domestic economic downturn.[27]
For the quarter the company's 13,000-plus U.S. restaurants delivered a 2.9% gain in comparable sales while operating income rose 5%. Although the slippage in March domestic sales stood out, several analysts downplayed its importance.[25] Despite shifting consumer spending habits motivating consumers to buy cheaper meals, analysts say the company's U.S. market has been affected by the weak housing market, higher gas prices and a dismal lending situation. The company posted a drop last month''in comparable sales, sales of restaurants open for at least 13 months--its first such drop in March since 2003.[7]
Comparable sales is a key indicator of restaurant performance since it measures growth at existing locations rather than newly opened ones. For the first two months in 2008, the company reported higher comparable sales, driven by its dollar menu, breakfast options, premium roast coffee and snack wraps.[17] Company CEO Jim Skinner said in a press release, "We delivered strong first quarter results, driven by comparable sales and guest count increases across all geographic segments and outstanding international operating performance."[15] Now moving on to our business in Asia-Pacific, Middle East, and Africa, significant momentum continues with a 9.4% increase in comparable sales for the first quarter. Nearly all markets contributed to this increase.[16]
APMEA had an excellent first quarter with comparable sales up 9.4% and company-operated margins up 170 basis points. China and Australia were key drivers of this performance, along with many other markets. I am extremely pleased with the ongoing contributions of this important business segment.[16] Our second-largest business unit delivered first quarter comparable sales of 11.1%.[16]
We don'''t expect that we are going to have to do any reacting to what the competitors are doing. Having said that, I'''ll let Ralph talk a little bit about what he sees in the competitive environment. We saw the normal pick-up that we see every January/February when it'''s winter and we all sales on a per day basis and people have less money in their pocket books but not anything that is significantly different than what we see every first quarter. So -- and a reaction basis, again we don'''t react to them but we would react if we saw something in our business or consumer reaction that we should adjust.[16]
The early numbers we have, we took market share in the first quarter again and so that'''s -- from an absolute sales number, we were lower obviously than we'''ve been the last five years but we took market share and we measure that on traffic, as you know, not on sales, and our focus is on traffic because that'''s the critical component. You know, we get them in the restaurants, we'''ll figure out how to get the successful average check from them down the road.[16] Net income for the first quarter is expected to be 70 cents per share, up from 62 cents a year earlier, according to a poll of analysts from Thomson financial.[24] On average, 15 analysts polled by First Call/Thomson Financial expected earnings of $0.70 per share for the first quarter.[17]
Wall Street expects the company to report earnings of $0.40 per share on revenue of $2.35 billion.[17] Analysts surveyed by Thomson Financial expected a quarterly profit of 70 cents per share on revenue of $5.4 billion.[14] On a sequential basis, the company's current quarter profit declined from $1.27 billion or $1.06 per share reported in the fourth quarter.[17] Excluding items, the company would have reported a profit of $44.8 million or $0.44 per share, compared to a profit of $55.4 million or $0.44 per share in the year-ago quarter.[28] The company also repurchased $2 billion of stock in the quarter and paid a quarterly dividend of 37.5 cents per share totaling approximately $430 million.[12]
The Oak Brook, Ill., company earned $946.1 million, or 81 cents a share, compared with $762.4 million, or 62 cents a share, a year earlier.[25] Net income advanced 24% to $US946.1 million, or 81 cents a share, from $US762.4 million, or 62 cents, a year earlier, the Oak Brook, Illinois-based company said today in a statement.[20]
In the same period a year earlier, McDonald's earned $762.4 million, or 62 cents a share.[22] McDonald's Corp. (NYSE:MCD) announced first-quarter net income of $946.1 million, or $0.81 a share, an increase of 24% from the $762.4 million, or $0.62 a share, reported in the year-ago period.[29]
OAK BROOK, Ill. (AP) - McDonald's shares fell 32 cents, less than a percent, to close at $58.35 today as the company announced its first-quarter profit rose 24%.[6] Fast-food giant's first-quarter profit surges 24%; company earns 81 cents a share, beating Wall Street's estimates.[19]
First-quarter earnings exceed Wall Street expectations by 4 cents a share. The food maker backs its recently raised guidance.[12] McDonald's Corp., shaking off a late-quarter loss of momentum in its U.S. restaurants, reported first-quarter earnings Tuesday that significantly exceeded Wall Street expectations.[9] McDonald's Corp. reported strong earnings Tuesday, handily surpassing analysts' estimate. The performance was attributed to positive growth in global markets such as China and Japan and a weakened U.S. economy where many consumers are seeking out less-pricey food options.[7] Fast food giant McDonald'''s (MCD) reported better-than-expected earnings Monday, as the company offset slumping sales here in the U.S. with strong international growth.[21]
McDonald's operates in more than 100 countries, and it saw double-digit sales growth in Europe, Asia, the Middle East and Africa, the company reported.[2] McDonald's biggest growth came from its offshore operations: Comparable-store sales in Europe rose 11.1 percent, boosting revenues there 23 percent.[9] Europe's revenues rose 23%, or 11% in constant currencies. This included an 11.1% comparable sales increase - the highest growth rate in the segment's history.[15]
Europe's revenue soared 23% to nearly $2.4 billion, stoked by a record 11.1% increase in comparable-store sales.[25] Our refranchising efforts help us provide customers a more locally relevant experience and while it has direct positive implications for the predictability and reliability of our cash flow, it initially impacts total revenue dollars because we only collect rent and royalty income versus 100% of the restaurant sales. This more stable revenue stream supports our goal to return $15 billion to $17 billion to shareholders from 2007 through 2009.[16]
For the first quarter, sales from company-operated restaurants improved 2% to about $4 billion from $3.91 billion a year-ago.[17] Higher commodity cost more than offset the comp sales increase, netting U.S. margins down 20 basis points for the quarter. In the first quarter, U.S. cheese costs rose about 30% while beef and chicken both increased nearly 4%.[16] Sales at U.S. restaurants open at least 13 months rose 2.9% in the quarter, but fell 0.8% in March, the company said. That compares with a 3.3% increase in the fourth quarter.[8] The March drop in U.S. same-store sales missed a median estimate of a 1% gain by five analysts surveyed by Bloomberg News. Consumers worried about their jobs and facing the deepest housing slump in at least a quarter century have cut back on trips to restaurants.[20] Overall, U.S. same-store sales grew 2.9 percent during the quarter that ended March 31, while increasing more than 11 percent in Europe and 9.4 percent in Asia and the Middle East.[14] A 0.8 percent dip in U.S. comparable store figures for March — an important metric for retailers — kept McDonald's stock from rising Tuesday, despite assurances from the Oak Brook-based fast-food chain that same-store sales were on track to rebound in April.[14] The March U.S. sales drop sent McDonald's shares 1.3 percent lower in afternoon trade and dragged down stocks in the fast-food sector, which had been somewhat insulated from the U.S. economic slowdown as cash-strapped consumers moved to cheaper restaurants.[4] Speiser termed the share price fall a myopic reaction to the company's slightly negative comparable-store U.S. sales in March.[2]
The previous negative month was March 2003, when comparable U.S. sales dropped 1.2%. March's performance was partly attributed to this year's early Easter, which reduced restaurant traffic over that weekend.[25] The company did say that March comparable same-store sales in the U.S. were '''slightly negative.'''[21] For April, the company forecast a 2% to 2.5% increase in U.S. same-store sales. It forecast a 5.5% to 6.5% increase in Europe same-store sales for the month and a 6.5% to 7.5% increase in the Asia/Pacific, Middle East and Africa region.[8] The restaurant company said it expects U.S. same-store sales to recover in April with a gain of 2% to 2.5%.[20]
European Results Same-store sales at European restaurants jumped 11% in the quarter, spurred by breakfast foods in Britain, small chicken sandwiches in France and cheeseburgers in Germany, Heidi Barker, a McDonald's spokeswoman, said today in an interview.[20] Same-store sales at European restaurants rose 11 per cent, as the appetite grew for breakfast foods in Britain, small chicken sandwiches in France and cheeseburgers in Germany.[23]
January and February same-store stores sales rose 1.9 percent and 8.3 percent respectively. Europe sales have been strong due to its premium beef and chicken selections, the company said in reports earlier this year.[24] In the first two months of the year, U.S. same-store sales grew at 1.9 percent and 8.3 percent for January and February respectively.[5]
For the quarter, McDonald's said, comparable-store sales were up 2.9 percent in the U.S., and operating profits for McDonald's USA were up by 5 percent.[9] Europe is the company's largest region by revenue, generating 42% of first-quarter sales and 39% of operating profit, McDonald's said in the filing.[20]
Revenue grew 3 percent in the U.S. to $1.9 billion while operating profit climbed 5 percent to $682.5 million.[14] European revenue climbed 23 percent to nearly $2.4 billion while, quarterly revenue in Asia, the Middle East and Africa grew 24 percent to about $1 billion. Both geographic regions operating profit growth of more than 45 percent.[14]
Operating revenues for the quarter totaled $816 million, representing growth of 34.2% over operating revenues of $608 million in the first quarter of 2007.[28]
Analysts, on average, polled by First Call/Thomson Financial expected a loss of $0.07 per share on revenues of $785.88 million.[28] Analysts had expected the restaurant chain to post earnings of $0.70 a share on revenue of $5.4 billion.[29] On average, analysts polled by Thomson Reuters expected per-share earnings of 70 cents on revenue of $5.4 billion.[10]
Analysts' Estimates Analysts surveyed by Bloomberg estimated McDonald's would earn average profit of 70 cents. They projected revenue of $US5.44 billion.[20] Analysts surveyed by Thomson Financial expected a quarterly profit of 70 cents on revenue of $5.4 billion.[19]
Ten Wall Street analysts' consensus revenue estimate came in at $5.40 billion.[17] Oak Brook-based McDonald's said revenue climbed 6 percent to $5.6 billion, handily beating Wall Street forecasts.[1] Wall Street's consensus estimate was for revenue of $5.4 billion in the March period.[22]
Twelve Wall Street analysts' consensus revenue estimate came in at $895.62 million.[28]
Quarterly revenues increased to $907.66 million from $944.02 million in the same quarter prior year.[28] The fast food giant reported revenue of $5.61 billion, an increase of 6% over the $5.29 billion posted in the previous year.[29] The Oak Brook, Ill., fast food restaurant chain said revenue increased 6% to $5.61 billion from $5.29 billion.[10]
Revenues for the quarter rose to $5.6 billion from $5.3 billion in the comparable quarter a year-ago.[15] Revenues increased 6 percent to $5.61 billion''from $5.29 billion in the prior-year quarter.[7] Sequentially, quarterly revenues dropped from $5.75 billion revenues generated in the fourth quarter.[17]
Revenue rose 6% year-over-year to $5.61 billion from $5.29 billion in the same period a year earlier.[22]
Exxon Mobil was the most profitable Fortune 500 company last year by far, raking in $40.6 billion in earnings.[19] Shares of fast-food company Wendy's WEN, which reports earnings on Friday, also were lower, down 59 cents to $24.71.[12] Shares of McDonalds fell 28 cents, or 0.48 percent to $58.39 at 11:23 a.m. on the New York Stock Exchange. This article is copyrighted by International Business Times.[5] Shares of McDonald's were trading recently at $57.89, down 77 cents, or 1.35%, on the New York Stock Exchange, where the stock is a component of the Dow Jones Industrial Average.[25]
McDonald's shed 32 cents to $US58.35 at 4.01pm in New York Stock Exchange composite trading. The stock has declined less than 1% this year after five straight annual gains.[20]
In Brooklyn, New York, customers paid $US3.29 for the hamburger. The U.S. currency touched a record $1.6019 in New York trading today against the euro and has depreciated 8.7% this year.[20]
"The bottom line here is that (McDonald's) continues to perform very well in a challenging environment and continues to benefit from a balanced portfolio of global assets that generate tremendous cash flow," Deutsche Bank analyst Jason West wrote to investors in a research note. The company said it planned to open 1,000 new stores worldwide this coming year and was progressing with its massive rollout of a specialty coffee program in the U.S. So far, McDonald's lattes, mochas and other espresso-drinks are now available in 1,300 U.S. stores.[14] ''I like where McDonald's is going,'' Steve West, a Stifel, Nicolaus & Co. analyst in St. Louis, said today in a Bloomberg Television interview. The March sales decline was ''a little bit of a chink in the armor since it's been five years since we've seen this from McDonald's.'' He recommends investors buy the shares.[20] The March decline "certainly speaks to a challenging industry sales environment and a modest deceleration at (McDonald's)," Goldman Sachs analyst Steven Kron said in a client note.[4]
U.S. sales at stores open at least 13 months fell 0.8% in March, McDonald's said today in a regulatory filing.[20] UBS Securities said "there is a lot of energy in the MCD system that will yield solid EPS upside in '08." On a conference call, chief executive officer Jim Skinner said that while it had seen "some ebb and flow" in its recent U.S. sales because of the economy and Easter, "we don't expect we're going to have to do any reacting to competitors." He added that while McDonald's franchisees "feel the impact of this environment, they are optimistic about the future."[25]
European sales in outlets open at least a year rose 11% - a record, while U.S. sales rose 2.9%.[26] U.S. sales were unchanged in December and rose 1.9% in January and 8.3% in February, helped by an extra day for the leap year.[20]
McDonald's said global comparable-store sales, or sales of stores open at least a year, rose 7.4%.[10] In February, global comparable store sales advanced 11.7% and systemwide sales for the company's worldwide restaurants rose 19.9%.[17] The Oak Brook, Ill., restaurant giant and component of the Dow Jones Industrial Average said global comparable sales rose 7.4% in the period.[22]
Comparable sales refer to sales in all restaurants operating for at least 13 months.[2] "We delivered strong first-quarter results, driven by comparable sales and guest count increases across all geographic segments and outstanding international operating performance," Chief Executive Jim Skinner said in a statement.[3]
Positive comparable sales were the key factor behind the quarter'''s strong performance. Company-operated margins as a percent of sales increased 60 basis points, driven by Europe and APMEA. This also included a 20 basis point benefit from the transition of Latin America to a developmental license structure in August 2007.[16] Europe'''s 11% comparable sales increase in the quarter helped deliver a 60 basis point increase in company-operated margins.[16]
Turning to the United States, we delivered solid comparable sales for the quarter of 2.9%., we did see some ebb and flow in sales, partly as a result of the current economic environment and play on days because of the Easter shift.[16]
Looking forward, we continue to run our business with disciplined fiscal practices, balancing growth from comparable sales and new units to drive strong cash flow and returns.[16] U.S. company-operated margins were relatively strong at 17.8%, driven by comparable sales growth of 2.9%.[16]
The U.S. business saw comparable sales rise 2.9% and operating income jump 5.9%.[11] The company did note, however, that comparable sales in the U.S. were'slightly negative' in March.[22] For the month of January 2008, the company reported a 5.7% rise in comparable sales, with systemwide sales for worldwide restaurants increasing 13.4%.[17]
McDonald's is optimistic with April comparable sales expecting to improve 2 percent to 2.5 percent, according to a press release.[7] For the month of April, Europe's comparable sales are expected to be in the range of 5.5% - 6.5%, reflecting the impact of the change in timing of the Easter holiday from April in 2007 to March in 2008.[17] While March'''s comparable sales were down slightly, we estimate April comparable sales will improve to about 2% to 2.5%. In this environment, our strategy of everyday affordability becomes even more important and we will continue to emphasize our value offerings.[16] While comparable sales for March were slightly negative, April comparable sales are expected to grow between 2% and 2.5%.[17] Weak consumer spending is hurting the chain, though, as March comparable sales were negative.[11]
Comparable sales for Asia/Pacific, Middle East and Africa remain strong and are expected to increase in range of 6.5% - 7.5% for the month of April.[17]
In Asia, the Middle East and Africa, sales rose 9.4 per cent as outlets extended hours and sold more burgers and chicken sandwiches.[23] The hamburger chain turned sales around in April 2003 with a discount menu selling double cheeseburgers for $US1. It coupled lower-priced foods with healthier salads and chicken sandwiches, longer hours and restaurant renovations to spur almost five years of higher sales.[20] It'''s our better, not just bigger strategy that influences our capital expenditure plans. This strategy guides our decision on the amount, location, and nature of our capital investment. We expect to open about 1,000 new restaurants this year, up 20% from the number we built in 2007. This increased number of openings reflects an aggressive 20% to 25% unit growth rate in our high potential markets of Russia and China. This year, nearly one-fourth of the 170 locations we'''ve added were in China. Our restaurant addition target also includes higher new unit openings in affiliate and developmental license markets, such as Japan and Latin America, where we invest no capital and collect a royalty based on sales.[16] The Oak Brook, Illinois-based company has already reported growing global same-store sales for January and February, with growth in each of its main regions.[24] Global same-store sales at the fast food chain were up 7.4. The same-store sales figure measure only stores open at least 13 months.[5] The fast food giant benefited from the weak U.S$. and strong global sales.[6]
Consolidated franchise margins were up 140 basis points in the quarter, also driven by strong global sales.[16]
McDonald's first quarter performance reflects the company's global presence.[17] Combined operating margins, a measure that captures company operating and franchise margin performance, as well as G&A; control, rose nearly four percentage points to 26.1% in the first quarter.[16]
In the first quarter, we were opportunistic with our share repurchases, buying back $2 billion in stock.[16] Today, our worldwide system is 78% franchise, up over four percentage points from first quarter 2007. We expect this percentage will continue to increase as we make progress on our goal to franchise 1,000 to 1,500 company-operated restaurants over the next few years.[16] In closing, I just want to reiterate that the fundamental strength of our global business continues and we'''ve delivered very strong first quarter results.[16] Most important -- the focus on execution at the restaurant and providing our customers with a better experience. This energy I experienced at our worldwide convention, coupled with our current business momentum, reinforces my confidence in the direction we are heading and my optimism that our global business will continue to deliver on our revenue, income, and return goals.[16] '''McDonald's ongoing financial performance is a testament to the strength of our business model and the effectiveness of the Plan to Win,''' said CEO Jim Skinner in''the release. Building its global presence and forward-looking strategy, for the seventh consecutive Olympic games, McDonald's serves as the Official Restaurant of the games.[7]
Total operating costs and expenses were $4.15 billion, in comparison with $4.11 billion in the year-ago period. McDonald's competitor Yum! Brands Inc. (YUM), a Louisville, Kentucky-based restaurant company, is scheduled to report its first-quarter financial results on April 22.[17] Capital Spending McDonald's said it plans $US2 billion in capital spending in 2008 and expects to open 1000 restaurants.[20]
McDonald's shares fell 32 cents, less than a percent, to close at $58.35 Tuesday.[14] Shares in McDonalds were down 1.4% at $57.85 in afternoon trade in New York.[26] Shares of McDonald's closed Monday's regular trading session at $58.67.[17]
McDonald's MCD got a big boost from overseas as the fast-food giant recorded a 31% increase in quarterly earnings per share.[12] "We expect dollar weakness, particularly vs. the euro and yuan to provide a boost to (earnings per share)," analyst Mark Bashan said in a report. He expects earnings per share of 68 cents.[24] Earnings surpassed analysts expectations of 70 cents per share, according to Thomson Financial.[5]
Analysts polled by Thomson Financial had predicted McDonald's would earn just 70 cents per share.[2]
The company noted that earnings in the latest quarter reflect a currency benefit of 5 cents a share. [22] The company added that the strategies of everyday affordability, menu variety and convenience enabled the U.S. to build market share during the quarter.[17]
Our ongoing share repurchases and disciplined compensation practices combine to decrease diluted shares outstanding by 57 million shares, or 5% year over year. This decline contributed about six percentage points to the quarter'''s EPS growth rate.[16] Skinner added that McDonald's served 2.5 million more customers per day in the most recent quarter than it did a year earlier.[2] McDonalds managed to keep up with customer demands over the last few years through lower-priced foods and healthier salads and chicken sandwiches as well as longer hours of operation and restaurant renovations.[3] New food news on the 100 YEN value menu and the McWrap on the breakfast menu have proven popular with customers. Japan now has more than 1300 restaurants on 24-hours with more scheduled to go on this year.[16]
John, on extended hours, in Europe we have about 8% of the estate is on 24 hours and we hadn'''t done a significant amount of extended hours. As you may know, other than the U.K., we don'''t have much of a breakfast business over there except where we started to put McCafes in Germany, so it'''s still a pretty big future opportunity for us, both extended and 24-hours. On reimaging, at the end of March, we were close to 2,000 reimaged restaurants of the total restaurants in Europe and planning another 700 or so by the end of this year. That'''s about the pace.[16] Currently about 70% of our restaurants in Europe offer some type of extended hours. As we further build our breakfast business, we have significant opportunity to increase the number of restaurants opening earlier and with only about 600 restaurants open 24 hours, this will be a major area of focus.[16]
You are right in that the average check is up a little bit less than the average price increase and we are seeing a little more activity on the dollar menu but it still remains remarkably consistent in that 13% to 14% of sales, so when we look at our dollar menu activity, while the units may be up a little bit the percentage of total sales are in that 13% to 14%. We are very comfortable that in this environment we are continuing to get -- keep traffic coming in the restaurants with our strategy of focusing on the value. As you know, it'''s much harder to get those customers to come back than it is to keep them in the restaurants, so that'''s an important part of it.[16]
We'''ll be done when we said we would be done in '''09. I mentioned earlier that right now in '''08, it is not a big part of our strategy in terms of growth because we are in the implementation stage and we are seeing the results, I think Ralph mentioned earlier, that we had expected from this, and we are in good shape on this strategy. Matt, remember that $100,000 plus lift in sales is a combination of not only the specialty coffee which is the initial part of this rollout but then the broader beverage business, which includes the bottled beverages, the smoothies, the frappes, the sweet tea.[16] Same-store sales are considered to be an important measure of retail performance because it tracks growth from established stores rather than growth from newly opened ones.[8] Same-store sales in the region that encompasses Asia, the Middle East and Africa increased 9.4% as outlets extended hours and sold more burgers and chicken sandwiches, Barker said.[20] McDonalds sales spurt at the start of 2008 came after a slow December where same-store sales were flat.[24]
McDonald's projects higher sales gains overseas, with Europe rising 5.5% to 6.5% and the region encompassing Asia, the Pacific, the Middle East and Africa advancing 6.5 to 7.5%.[20] Sales in Europe stores were up 11.1 percent. Its Asia/Pacific, Middle East and Africa stores were up 9.4 percent.[5] In France, we have -- and Germany, a much higher drive-thru percent. I think the number is more in the 30 -- I think overall sales is like 30% or 35% range for -- of the total sales for Europe, but it'''s higher in those restaurants that have drive-thru.[16] On a drive-thru basis, it really varies significantly throughout Europe based on the estate that we have, so it'''s not as much as a percentage of sales in the individual restaurant as how we develop the estate.[16]
In the U.S., it'''s less than five-tenths on sales in terms of the Easter impact. In Europe, it'''s more like a 2% impact because a lot more people travel and plan their holidays around Easter in a very concentrated timeframe, so we see a 2% benefit around Easter in Europe and a less than 5% negative in the U.S. around the Easter holiday.[16]
I know you see a lot of press about food costs but labor was actually more inflationary in the quarter. I'''m just wondering if there is anything specific going on in Europe or the U.S. on the labor line that'''s going to roll over here, or is this kind of the way it'''s going to be for the rest of the year? Thanks.[16] We are pretty comfortable with the current environment that we'''ll continue to be able to get some price increases, maybe not 100% of our cost increases but still cover most of that margin as an investment for the future. I think also a small piece in that right now is if you compared the last three or four years of what the U.S. marketing calendar has been, it'''s been very premium product focused and we consciously have been focused on breakfast and/or a value during these current times.[16] We believe our U.S. growth strategies of chicken, breakfast, beverages, and convenience will continue to deliver results today and into the future.[16]
We'''ve seen significant growth in our breakfast business. We have an opportunity to grow this day part exponentially when you consider that many of our existing customers have yet to discover breakfast at McDonald's.[16] Speiser explained that growing numbers of people, especially women, are entering the workforces of developing countries. As economies develop, people increasingly eat away from home, and McDonald's is there to capture that growth, he said, adding that the company has been adept at fine-tuning its menus to the needs of new customers.[2]
Associated Press - April 22, 2008 8:25 AM ET OAK BROOK, Ill. (AP) - McDonald's Corporation says its first-quarter profit rose 24% as the fast food company benefited from the weak U.Sdllrrs[6] While the fast-food chain was not immune to the slowing economy in the United States, Speiser pointed out that half the company's profits were generated from international sales.[2] The Illinois company, however, expects sales to rebound in April to a 2% to 2.5% gain.[11]
For the year the company said it expects to open about 1,000 restaurants, 20% more than last year.[25] Among other metrics, quarterly operating income increased 24% to $1.46 billion from last year's $1.18 billion.[17] Total other income rose to $52.854 million from $48.876 million in the previous year.[28] Total interest income declined to $145.524 million from $156.935 million a year ago.[28] Net interest income came in at $84.299 million from $82.006 million in the prior year.[28]
Delivering strong results, Asia/Pacific, Middle East and Africa reported an increase of 24 percent to $1.03 billion from $830.3 million.[7] Revenue was up 6 percent to $5.61 billion, beating expectations of $5.4 billion.[5] European revenue soared 23 percent to $2.38 billion compared with $1.93 billion.[7]
The U.S. reported a revenue''increase of only 3 percent, to $1.9 billion compared with $1.84 billion.[7]
Our robust global business generated nearly $5 billion of cash from operations in 2007 alone.[16] ''The company isn't recession-proof, but it is somewhat recession-resistant,'' Dean Kartsonas, who helps manage $US338.5 billion in assets for Federated Investors in Pittsburgh, said today in a Bloomberg Television interview.[20]
Nokia, the world's largest manufacturer of mobile telephones, and Sony BMG, the world's second larges record label, will work together on 'Comes With Music', a handset which Nokia plans to launch in. South Korean billionaire Lee Kun-hee announced his decision to step down as chairman of Samsung, the Asian country's largest conglomerate and one of the largest super-multinationals in the world. AT&T; Inc, the largest provider of both local and long distance telephone services, wireless service, and DSL Internet access in the United States, announced on Tuesday it recorded an increase in. New York City mayor Michael Rubens Bloomberg, who is also the founder of financial news and data company Bloomberg L.P., has denied rumors that he is pondering a takeover of The New York. The U.S. Federal Communications Commission had its widely anticipated hearing on broadband access and management practices.[3] The company specifically cited China as a country with strong performance last quarter, which helped bolster 20.4% revenue increase in the Golden Arches' Asia-Africa region.[2] On a secondary basis in Russia, which is becoming a bigger piece of Europe, just the way we do our price increase there, that'''s a much more inflationary environment. They don'''t always stock up exactly when we get increases, and so the number fluctuates a little bit more quarter to quarter, but we feel we know we'''ll be in line by the end of the year. Jeff, specifically you asked about the U.K., they benefited margins by about 30 basis points in the quarter.[16] You know, we had traffic increases across all the segments so that obviously is very good, and it ranged from maybe a little more than a third of our growth came from traffic in the U.S. to close to 50% from traffic in Europe and nearly 60% in APMEA.[16] Many economists are saying that consumption growth in Europe could slow and some companies have cited there may be some signs of slowing there already. I'''m wondering, are you seeing any evidence anywhere in your European business of diminished consumer strength? And to the degree that this occurs, or is occurring, do you see your business there being somewhat more cyclical than the U.S. and perhaps you would make a change in your strategy away from premium innovation to something else.[16] The picture looks brighter outside the U.S., with growth in Europe driven by the French, UK and German markets.[26]
Continued growth in Australia and China contributed to a 9.4 percent sales upturn in the Asia/Pacific and certain other international markets, officials said. [9] Looking ahead, we expect our share count will continue to decline and benefit our EPS growth rate.[16] To support our menu strategy, implementation of the bridge operating platform continues. It is currently in more than 3,500 restaurants and markets around Europe, including France, Germany, and the U.K., and we expect it will be in most all markets or all restaurants by the end of 2009.[16] We do our pricing based on what customers expect to pay in our restaurants. We do look at what other products are out there but the most valid data point is expectation at McDonald's for the specific product is what gives us the best accuracy and then how that plays with the other products on the menu that may be similar -- in this case, obviously chicken. We tested geographically dispersed on this -- we had 2,000 restaurants for this test, more than we normally have because we knew how it would perform in the south but we needed to get a better handle out west and north, and so we felt strongly enough that it'''s something that we believe we can do nationally, obviously with an expectation that we are going to sell more units in the south where people are familiar with it initially but that long-term, this makes sense for us across the country.[16] We are currently in about 1300 restaurants and expect the rollout to accelerate and pick up pace later in the year. That'''s a look at McDonald's around the world.[16]
'''We support the athletes and believe in the spirit of the games,''' said Senior Director of Corporate Relations Heidi Barker. McDonald's is focusing its efforts on franchise opportunities globally. World-wide, about 78 percent''of McDonald's stores are franchisee-owned and the company is looking to increase that number within the next three years, said Barker.'' ''' makes sense for local people to own the local restaurants. knowing the local cultures and local suppliers,''' she said.''[7] McDonald's acknowledged that it was being pressured by prices of some key commodities. That of cheese in the U.S. is up 30% from a year earlier, those for beef and chicken up nearly 4%.[25] For the year, we currently expect U.S. chicken prices to rise 5% to 6%, cheese to be up 13% to 14%, and beef to trend downward and end the year relatively flat.[16]
The launch of our premium chicken strategy in November of '''07 has been extremely successful, with results far exceeding our expectations. We are on pace to double our chicken business in Australia in just three years, plus we'''ve added addition convenience with 24 hours in more than 30% of restaurants and improved drive-thru operations are also contributing to this market'''s results.[16] One more quick question on the margins; unit closures and refranchising kind of came in a little bit ahead of our expectations. You know, we did see a little bit of benefit in the U.S. on our company-operated margins from some of the refranchising, but there isn'''t a specific target or goal that they have. While I think probably throughout the rest of the year we'''ll see a slight benefit to that, it really depends on the mix of stores that they sell. They aren'''t specifically selling restaurants because they are poorer margin performers. They are looking more holistically at the marketplace and which doors should we operate, which ones should franchisees operate, et cetera.[16]
McDonald's and rival hamburger seller Burger King Holdings have been outperforming the overall U.S. restaurant sector, which has been hobbled by high gasoline and food prices, a slumping job market and falling home values.[8] The company was founded in 1940 with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California.[3]
McDonald's Corp., powered by a robust performance overseas, posted a surprisingly strong 24% jump in first-quarter earnings.[27] "Over the next 12 to 18 months, we're going to see coffee as a catalyst for sales," Thrivent Asset Management analyst Chris Scheurer told Bloomberg News. This underscores why now is a good time for the great taste of McDonald's.[11] ''There is a lot of energy in the McDonald's system,'' David Palmer, a UBS analyst in New York, wrote today in a note to clients. He recommends buying the stock.[20]
McDonald's global momentum is apparent, said Buckingham Research analyst Mitchell J. Speiser.[2]
Analysts, on average, had been looking for a profit of 70 cents a share, according to Reuters Estimates. [8] Major competitor Burger King's BKC shares were down 84 cents to $27.65.[12]
I'''m going to let Pete talk about the details but we feel good about where we are with the G&A; and our goal, of course, is to be more efficient and we achieved that in the first quarter and we feel good with what we have ahead of us for the year relative to the G&A.; And some of that is being contributed really by the Latin American transaction relative to reduced G&A; costs from that segment. [16] Our healthy balance sheet and strong credit rating gives us ready access to capital. We demonstrated this in the first quarter when we secured attractive financing earlier than needed to pre-fund certain debt maturing in the second half of the year.[16]
In the first quarter, we refranchised about 130 restaurants, primarily in our major markets.[16] Normally if we had a 3% or so comp, we would cover our costs in Europe but with the higher commodity costs, that number right now for the -- would have been more in the 5-plus range for the first quarter.[16]
Two questions; first in Europe and in more generally outside the U.S., you did touch on breakfast and drive-thru.[16]
So we'''ve been in breakfast, as you know, for 30-plus years and it'''s a great experience for our customers at that time and it continues to get better. [16] Initiatives to upgrade the customer experience include our ongoing reimaging efforts. U.K. began two years ago by reimaging the majority of their heavily traveled High Street locations. In 2008, they will reimage 200 more restaurants with an emphasis on those with drive-thrus. Germany will continue their aggressive reimaging program with the goal of having 100% of our German restaurants reimaged by the end of 2009.[16]
Our important breakfast business continues to thrive. Looking ahead, we are advancing both our breakfast and chicken strategies with the May launch of our new Southern Style Chicken. [16] I think in general the margins were predictable across all three months and we also had an emphasis on breakfast, which you know is a high margin business for us. So overall our long-term strategy of chicken, beverages, and breakfast helps during these times also.[16]
We will offer a chicken biscuit sandwich at breakfast and a new chicken sandwich the rest of the day. This summer we will highlight beverages with an emphasis on building traffic and add-on purchases by promoting McDonald's Sweet Tea and Iced Coffee in conjunction with core menu favorites.[16]
SOURCES
1. The Associated Press: McDonald's 1Q profit rises on strong international sales
2. McDonald's Super-Sizes Globally - Forbes.com
3. McDonald's Posts Profit Above Estimates, US Sales Slow
4. McDonald's U.S. sales show consumer pullback | Markets | Hot Stocks | Reuters
5. McDonalds Profit Rises 24 Pct. on Strength of Global Sales - International Business Times -
6. WANDtv.com-Illinois Weather And News on Demand for Decatur, Champaign-Urbana, Springfield, Charleston, Clinton, Danville, Effingham, Jacksonville, Lincoln, Mattoon, Monticello, Shelbyville, and Taylorville WANDtv.com, News Center 17! : McDonald's posts Q1 profit of $946 million
7. McDonald's first quarter earnings rise amidst strong global presence and weakened economy
8. Weak U.S. sales overshadow strong McDonald's profit - USATODAY.com
9. McDonald's profit up 24%, beating expectations -- chicagotribune.com
10. McDonalds 1Q Net Rises 24% To $946.1 Million, Revenue Up 6%
11. McDonald's crushes earnings estimates - BloggingStocks
12. McDonalds Profit Soars | Food and Beverage | BKC MCD WEN - TheStreet.com
13. McDonald's quarterly profit rises on strong international sales | Markets | Headline News | Canadian Business Online
14. The Associated Press: McDonald's 1Q profit rises on strong international sales
15. McDonald's Earnings Boosted By Strong International Sales [MCD] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news .
16. McDonald's Q1 2008 Earnings Call Transcript - Seeking Alpha
17. McDonald's Q1 Profit Rises 24% On Strong Overseas Sales [MCD] - RTTNews, Today's Top Stories, Global Newswires, ToDay's Top News,Global Business news .
18. Earnings roundup: McDonald's, UnitedHealth - Forbes.com
19. Weak dollar, global sales propel McDonald's - Apr. 22, 2008
20. McDonald's profit beats estimates | theage.com.au
21. McDonald's Beats the Street; First-quarter Profit Jumps 24%
22. UPDATE: McDonald's shares off 2.5% in premarket despite 1Q eps ahead of view - Forbes.com
23. Americans lose appetite for McDonald's; Europeans chow down - Business
24. McDonalds to Report 1Q Profit on Growing Global Sales - International Business Times -
25. 3rd UPDATE: McDonalds 1Q Net Up 24%; US March Sales Down
26. BBC NEWS | Business | US hunger for McDonald's slowing
27. Free Preview - WSJ.com
28. RTTNews - Quick facts Articles, Positive EPS Surprises, News Analysis, Earnings, Audio News.
29. News Briefs - Comtex SmarTrend Alert
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