McDonald's posted Q2 profits of $1.19B compared to $711M in the year before period. Same-store sales were helped by strong international sales. Overall, same store sales rose 6.1% globally and 3.4% in the U.S. Despite strong sales, McDonald's continued to be dogged by rising costs and warned that it may be forced to raise prices on it's popular Dollar Menu items.
McDonald's strong international presence is helping it weather a slowdown in it's core North American market. The company reported its first decline in monthly U.S. comparable sales in five years -- down 0.8% in March. Despite this, McDonald’s profit rose 24% thanks to a weaker dollar and strong international sales. For the quarter earnings topped $940 million. European revenue grew by 23% while revenues in Asia, the Middle East and Africa grew by 24% giving both regions strong, double digit growth.
McDonald's reported a 3% rise in fourth-quarter net income amid strong international same-store sales. "Softer" domestic indicate that McDonald's is feeling the pinch from slowing consumer spending in its core, U.S. market.
With the potential onslaught of recession, investors fear that consumers will spend less on eating out, which will impact McDonald's sales. The drop in 2007 Q4 earnings suggest that the drop in sales is indeed significant, and the steady drop in stock price in early 2008 exemplifies investors' fears about the company.
Today, McDonald's announced plans to install coffee bars in each of its 14,000 U.S. locations, predicting that these offerings could add over $1B in revenue.
Shares rally as McDonald's posts an impressive 8.2% in global same store sales boosted by sales of $1 cheeseburgers and cappuccinos.
McDonald's reported Q3 net income climbed 27% to $1.07 billion while revenues rose 7.2% to $5.9B. McDonald's quarterly global comparable sales also rose 6.9%.
McDonald's announced that it had gotten rid of its investment in Chipotle Mexican Grill, Inc.
McDonald's increased its dividend payout close to 50% from 67 cents to $1 per share, totaling about $1.2 billion.
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