McDonald's Reports Third Quarter Earnings With Positive Comparable Sales Across All Segments
"While our sales momentum and current financial results reflect today's challenging conditions, we continue to see significant long-term opportunities for brand McDonald's and remain confident in the underlying strength of our business model," said McDonald's Chief Executive Officer Don Thompson. "We have the right plans in place to drive long-term profitable growth along with the experience and alignment throughout the McDonald's System to navigate the current environment. We expect near-term top- and bottom-line growth to remain pressured as we focus on driving guest traffic and market share by leveraging our strategies and competitive advantages in response to the global economic, operating and competitive challenges. As we begin fourth quarter, October's global comparable sales are currently trending negative."
Third Quarter highlights included:
- Global comparable sales increased 1.9%, with positive comparable sales in each geographic segment
- Consolidated revenues of $7.2 billion were relatively flat compared with the prior year (up 4% in constant currencies)
- Consolidated operating income of $2.3 billion decreased 4% (flat in constant currencies)
- Diluted earnings per share of $1.43, down 1% (up 4% in constant currencies), including $0.08 per share of negative currency impact
- Returned $1.3 billion to shareholders through share repurchases and dividends
In addition, the Company previously announced the following:
- On September 20, 2012, McDonald's Board of Directors increased the quarterly cash dividend by 10% to $0.77 per share - the equivalent of $3.08 per share annually - effective for the fourth quarter 2012
McDonald's U.S. posted a comparable sales increase of 1.2% for the third quarter amid broad competitive activity. During the quarter, the U.S. showcased beverages, breakfast and classic core favorites, featured everyday value and continued to upgrade McDonald's existing restaurant base with fresh, modern designs. Operating income for the quarter declined 1%.
During third quarter, Europe generated comparable sales growth of 1.8% and delivered market share gains despite negative guest traffic. Europe's operating income decreased 7% for the quarter (increased 3% in constant currencies). Comparable sales and operating income in Russia, the U.K. and France led the segment's results, partially offset by Germany. Throughout Europe, premium food events, emphasis on everyday value and the ongoing benefits of reimaged restaurants supported the segment's results.
In Asia/Pacific, Middle East and Africa (APMEA), comparable sales increased 1.4% for the quarter as limited-time offers, featured alongside classic core favorites and unique value platforms, attracted more customers to McDonald's. APMEA's operating income increased 3% (4% in constant currencies) as solid comparable sales and operating income performance in China and Australia were partly offset by ongoing weakness in Japan and other markets.
Source: McDonald's U.S.
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