News

McDonald's Corp. second quarter sales boosted by global presence

July 22, 2010

McDonald's attributed a strong first quarter showing to a new beverage lineup, including premium roast coffees and the McCafe espresso-based drinks. McDonald's reported today that second quarter earnings rose 12 percent.

Sales in the United States were up 3.7 percent. But it was McDonald's global success that pushed its 2Q numbers even higher - international sales increased 4.8 percent. Specifically, sales in Europe increased 5.2 percent, and Asia/Pacific, the Middle East and Africa had increases of 4.6 percent.

"McDonald's second quarter reflects strong top-line and bottom-line results with each area of the world generating higher comparable sales, traffic and profits," said Chief Executive Officer Jim Skinner in a press release. "This performance demonstrates the popular appeal of McDonald's relevant menu choices. We're delivering great tasting food to our 60 million customers around the world every day."

The U.S. market continued to gravitate toward McDonald's beverage line up, including the popular new frappes and smoothies. Also a boon was the company's efforts to increase the number of in-store customers bolstered by a contemporary reimaging effort, new products and unchanged menu prices.

France, Russia and the U.K. fueled Europe's 9 percent operating income increase.

Asia/Pacific, Middle East and Africa's (APMEA) 19 percent operating income increase was supported mostly by Australia and China's daypart expansion and core menu extensions.

"I am pleased with our second quarter performance and confident in our ability to continue to deliver solid results," Skinner said. "As we begin the third quarter, our momentum continues with July global comparable sales trending in-line with or better than second quarter sales."

The second quarter numbers show a continued momentum from McDonald's first quarter increases, which saw global sales rise 4.2 percent and U.S. sales up 1.5 percent.