Non-US sales drive strong McDonald’s results

Non-US sales drive strong McDonald’s results
By Greg Farrell in New York
Copyright The Financial Times Limited 2010
Published: April 21 2010 15:06 | Last updated: April 21 2010 15:06
http://www.ft.com/cms/s/0/d668250a-4d4a-11df-baf3-00144feab49a.html


McDonald’s recorded an 11 per cent gain in earnings for the first quarter over the comparable period last year, driven by strong same-store sales and favourable exchange rates.

Excluding the currency fluctuations, the Illinois-based hamburger chain still grew net income by 5 per cent.

Once again, the restaurant chain’s performance was buoyed by increased revenues outside the US, its home market. Same-store sales rose by 5.2 per cent in Europe and 5.7 per cent in the Asia/Pacific, Africa and Middle East region. In the US, same-store sales grew by 1.5 per cent.

US total revenues for the quarter were flat, while revenues from Europe grew 7 per cent, before currency translation, and by more than 6 per cent in all other markets.

Operating income in the US grew by 12 per cent during the period, while the performance in Europe was almost double, at 23 per cent, after taking into account favourable exchange rates.

Excluding currency fluctuations, operating income in Europe grew by 14 per cent. In the rest of the world, McDonald’s operating income grew 27 per cent in the quarter, or 9 per cent in constant currencies.

“McDonald’s compelling menu, unmatched convenience and unbeatable value generated another strong quarterly performance,” said Jim Skinner, chief executive.

“For the first quarter, we delivered comparable sales and guest count growth in each geographic segment along with global double-digit operating income growth.”