McDonald's tops Street, Q2 same store sales rise nearly 6%
McDonald's Corp (NYSE:MCD) announced Friday a 15% hike in its second quarter profits, driven by growth in all markets, beating analysts' estimates.
For the three months ending June 30, the world's largest burger chain posted net earnings of $1.4 billion, or $1.35 per share, up from $1.2 billion, or $1.13 per share, a year ago.
Revenues for the quarter rose to $6.9 billion, up 16%, or 8%, excluding currency translation, from $5.9 billion in the year-ago period.
Analysts had anticipated earnings of $1.28 per share, on revenues of $6.63 billion.
Operating income for the quarter rose 19% to $2.2 billion.
"By providing relevant food and beverage choices in convenient, modern restaurants, we're giving customers more reasons to visit us more often," said CEO Jim Skinner.
"I am pleased with our second quarter performance and confident that the united efforts of our owner-operators, suppliers and employees will drive profitable growth for our shareholders over the long term, despite the continuing challenges of our economic environment."
Indeed, the company's global comparable sales for stores open at least one year rose 5.6% in the quarter, with the U.S. up 4.5%, Europe increasing 5.9% and Asia/Pacific, the Middle East and Africa (APMEA) hiking 5.2%.
In the U.S., McDonald's operating income rose 6% on increased sales from the McCafe line-up, including the Frozen Strawberry Lemonade, and its core offerings, like Chicken McNuggets and the Big Mac.
The company's European stores saw a 10% increase to operating income, in constant currencies, led by France, the U.K., and Russia. Meanwhile, APMEA's operating income grew 19% in constant currencies, reflecting convenience initiatives like drive-thrus, delivery and extended hours, the company said.
The Oak Brook, Illinois-based company, whose stock on the New York Exchange rose 2.6% before the bell, to $88.76 per share, said it expects same store sales to rise between 4% and 5% in the month of July.
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