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McDonald’s income up 9% to $1.5 billion on new menus, modernization

October 21, 2011 |  9:56 am

Mcdonalds
McDonald’s Corp., the world’s largest restaurant company, clocked another good quarter as it hustled to adapt to changing consumer tastes.

The report drove the company's stock to a record high.

Buoyed by modernization efforts, expanded menus and an increasing focus on quality, McDonald’s said  that comparable sales worldwide among stores open more than a year increased 5% in the third quarter. Net income rose 9% year over year to $1.5 billion, or $1.45 a share, while revenue soared 14% to $7.1 billion.

Same-store sales for the company, which is based just outside Chicago, were up 4.4% in the U.S., 4.9% in Europe and 3.4% in the Asia/Pacific, Middle East and Africa segment.

In the U.S., the chain bolstered its Dollar Menu, leaned on classics such as the Chicken McNuggets and Egg McMuffin and launched popular new offerings such as the Mango Pineapple Smoothie.

This week, the chain announced its new McDonald’s Channel, which will show exclusive original content along with local news and entertainment features in restaurants.

“The investments we are making to optimize our menu, modernize the restaurant experience and broaden McDonald's accessibility with ongoing convenience and value platforms are driving profitable market share growth,” Chief Executive Jim Skinner said in a statement.

The stock was up $2.37, or 2.7%, to a record $91.38. The price has surged 19% year to date, compared with a 1.2% rise in the Dow Jones industrial average.

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-- Tiffany Hsu

Photo: The golden arches of McDonald's in Omaha. Credit: Nati Harnik / Associated Press

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