News

McDonald’s turns in 11 percent profit increase

April 20, 2011

McDonald's Corporation announced strong results for the first quarter ended March 31, including an 11 percent increase in profits.

Highlights from the quarter included global comparable sales increases of 4.2 percent, with the U.S. up 2.9 percent, Europe up 5.7 percent and Asia/Pacific, Middle East and Africa (APMEA) up 3.2 percent.

Revenues also increased 9 percent. Diluted earnings per share were $1.15, up 15 percent. Additionally, the company returned $2 billion to shareholders through share repurchases and dividends.

CEO Jim Skinner said McDonald's dedication to menu optimization, modernized experiences and broader accessibility all contributed to a strong global performance.

"For the quarter, McDonald's delivered double-digit earnings per share growth led by higher comparable sales and guest counts across all geographic segments and strong franchise margin performance. Despite the challenges of the current economic environment, I am confident that McDonald's can continue to grow by listening to our customers and remaining true to our proven Plan to Win strategy," he said.

Broken down by segment

First quarter sales in the U.S. were boosted by the ongoing demand for McDonald's offerings including McCafe beverages, the new Fruit & Maple Oatmeal, the 20-piece Chicken McNuggets and the Chipotle BBQ Bacon Angus Burger.

Strong comparable sales in the U.K., France and Russia as well as positive comparable sales in Germany drove Europe's first quarter results. Europe delivered operating income growth of 12 percent, driven by classic core menu items, events and restaurant reimaging.

Australia and China fueled APMEA's first quarter comparable sales growth. Limited-time value offerings, particularly at the lunch daypart, restaurant reimaging and service initiatives around drive-thru, delivery and extended operating hours contributed to these results.

"We remain focused on strategies that will keep the McDonald's brand relevant, contemporary and compelling to our customers and deliver sustained profitable growth. I am confident that by harnessing the collective talents, resources and capabilities of our global system we will continue to grow our business in 2011 and for the long term," Skinner said. "As we begin the second quarter, our top-line momentum continues with global comparable sales trending in-line with or better than first quarter sales."