McDonald's Corporation has announced strong results for the third quarter ended Sept. 30, 2009, fueled by positive same-store sales in every area of the world. In constant currencies, the company posted higher revenues, operating income and earnings per share compared with the prior year.
"Alignment behind McDonald's long-term business strategy, the Plan to Win, is clear as our growth continues to be a systemwide effort with each area of the world contributing," McDonald's CEO Jim Skinner said in an earnings release. "McDonald's global results demonstrate the resilience of our strategies and our ability to execute successfully."
Overall, same-store sales were up 3.8 percent, with the U.S. up 2.5 percent, Europe up 5.8 percent and Asia/Pacific, Middle East and Africa up 2.2 percent for the quarter.
Consolidated operating income increased 6 percent while earnings per share rose $1.15, a 10 percent increase over the prior year.
"The consistent strength of McDonald's business is the result of our commitment to the customer," Skinner said. "We are keeping the McDonald's brand in demand and growing market share around the world by serving great tasting food at an outstanding value in a way that's convenient to today's consumers."
For the quarter, the U.S. generated solid comparable sales and drove an operating income increase of 6 percent. The ongoing appeal of McDonald's core menu along with favorable consumer response to the new premium Angus Third Pounders and McCafe espresso-based coffees fueled the U.S. results.
McDonald's Europe delivered strong third quarter comparable sales driving a 10 percent increase in operating income in constant currencies. Locally relevant premium products and promotions combined with compelling value drove the segment's quarterly performance.
In Asia/Pacific, Middle East and Africa (APMEA), operating income for the quarter rose 21 percent in constant currencies with Australia and China leading the segment. Emphasis on convenience, value, operations excellence and core menu are enhancing consumer appeal and driving growth across APMEA.
"We begin the fourth quarter from a position of strength, and I am confident that our focus on the customer and commitment to financial discipline will continue to deliver long-term profitable growth for our system and our shareholder," Skinner said. "For October, despite a declining informal eating out market around the world, we expect consolidated comparable sales to remain positive."
The company plans to release October 2009 sales information Nov. 9, 2009.
McDonald's also will webcast the investor meeting it plans to host Nov. 12, 2009. The call can be accessed through www.investor.mcdonalds.com.
