Purchased 100 Shares at $76 on 2/22/11
Ban on Happy Meal in San Francisco, sales fall in California
McDonald's announced a 1.4% increase in same-store sales for the month of February. Same-store sales grew by 2.8% in the United States for that month as well. Growth has been driven by higher demand as consumers search for lower priced food and dining options as a result of the global economic downturn.
McDonald's fourth quarter earnings fell 23% to $985 million from $1.27 billion a year before. The company pointed to slowing international sales, a strong dollar as main factors, and rising commodities prices as main factors.
MCD reported an 11% increase in profit driven by strong global growth. Europe saw a 8.2% increase in same store sales while the Asia/Pacific region saw a 7.8% increase in comparable sales.
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.