McDonald's Earnings Climb on U.S. Strength
26 January 2016 - 12:50AM
Dow Jones News
McDonald's reported fourth-quarter profit and sales that beat
expectations as customers flocked to its all-day breakfast menu,
the latest sign of progress in the burger giant's turnaround
effort.
Shares in the company, up 5.2% over the past three months, rose
3% premarket.
The Illinois-based company said sales at U.S. restaurants open
at least 13 months jumped 5.7% in the fourth quarter—a
stronger-than-expected increase that marks a back-to-back gain in
the metric after two years of declines. Same-store sales across all
regions rose 5% from a year earlier.
Under Chief Executive Steve Easterbrook, who took the helm last
year, McDonald's has announced a stream of initiatives—from curbing
antibiotics use in its chicken supply and simplifying its menu to
creating a new global corporate structure—to refresh the company's
image and end a sales slump that started several years ago. It
started offering in the fall breakfast items all day in the U.S.,
its biggest operational change in years
On Monday, Mr. Easterbrook called the fourth-quarter results "a
testament to the swift changes we made and the early impact of our
turnaround efforts." McDonald's credited strong same-store sales to
the all-day breakfast offering as well as unseasonably mild
weather.
Overall, McDonald's posted a profit of $1.21 billion, or $1.31 a
share, up from $1.1 billion, or $1.13 a share, a year earlier.
Revenue declined 3.5% to $6.34 billion. Analysts projected $1.23
in per-share profit on $6.22 billion in revenue, according to
Thomson Reuters.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
January 25, 2016 08:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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