Global Comparable Sales Fuel McDonald's Strong Results (Press Release)
McDonald's Corporation (NYSE: MCD) today announced strong operating results for the third quarter, driven by global comparable sales growth of 7.1%.
-- Chain Leader, 10/22/2008 9:59:00 AM
OAK BROOK, Ill., Oct. 22 /PRNewswire-FirstCall/ -- McDonald's Corporation (NYSE: MCD) today announced strong operating results for the third quarter, driven by global comparable sales growth of 7.1%.
"The strength of McDonald's ongoing results is a testament to our multi- dimensional Plan to Win, which features quality food, compelling value at every level of our menu and dependable convenience," said Chief Executive Officer Jim Skinner. "Our unwavering commitment to providing an outstanding restaurant experience to every customer, every time is driving comparable sales momentum and profitability growth in each area of the world."
McDonald's reported the following third quarter highlights:
* Global comparable sales increased 7.1%
* Continued growth in consolidated Company-operated and franchised restaurant margins
* Consolidated operating income increased 20% (15% in constant currencies)
* Earnings per share from continuing operations of $1.05, a 27% increase (22% in constant currencies) over the prior year
* Quarterly cash dividend increased 33% to $0.50 per share - the equivalent of $2.00 per share annually, and the Company repurchased $1 billion of its stock
Jim Skinner continued, "Our dedication to building our business by being better, not just bigger continues to strengthen our global performance. For the quarter, we delivered strong comparable sales, higher margin dollars and a double-digit operating income increase."
McDonald's U.S. delivered its highest sales increase of 2008, with third quarter comparable sales up 4.7% and operating income growth of 9%. Throughout the quarter, the U.S. featured core menu classics including the Big Mac, Southern-style chicken products and value-based beverages that offer menu variety and everyday affordability that resonate with consumers.
Building on its momentum, Europe generated strong top-line sales in virtually every market, posting a comparable sales increase of 8.2% along with operating income growth of 23% (14% in constant currencies) for the quarter. Alignment behind Europe's key priorities of enhancing local relevance, upgrading the customer and employee experience and building brand transparency continue to deliver robust results for the segment.
Asia/Pacific, Middle East and Africa's third quarter performance reflected broad-based strength across the segment, led by Australia and China. Operating income rose 28% (21% in constant currencies) for the quarter, fueled by a 7.8% comparable sales increase. Across Asia/Pacific, Middle East and Africa, the growth drivers of convenience, core menu extensions, breakfast, value and operations excellence are continuing to deliver results.
Skinner added, "Disciplined financial practices are the foundation of our enduring performance and provide critical support to our strategies. Demonstrating confidence in our continued momentum, we recently increased our dividend 33%, bringing our annualized dividend to $2.00 per share. As we enter the final quarter of the year, October sales trends remain strong and I am optimistic about McDonald's outlook. McDonald's is a strong, stable global business and remains well positioned to generate long-term profitable growth for our System and our shareholders."
RELATED COMMUNICATIONS
McDonald's Corporation will broadcast its investor conference call live over the Internet at 9:30 a.m. Central Time on October 22, 2008. A link to the live webcast will be available at http://www.investor.mcdonalds.com. There will also be an archived webcast and podcast available for a limited time.
See Exhibit 99.2 in the Company's Form 8-K filing for supplemental information related to the Company's results for the quarter and nine months ended September 30, 2008.
The Company plans to release October 2008 sales information on November 10, 2008.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K.
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