McDonald’s Corp.’s, the world’s largest restaurant chain, fourth quarter profit raised by 11% as this fast-food giant continues to attract budget-conscious customers. The company has seen its best U.S. results since 2006.
“During 2011, McDonald’s continued momentum drove higher profitability and market share gains as we fortified our leadership position around the world,” said McDonald’s Chief Executive Officer Jim Skinner. “The ongoing strength of McDonald’s results is rooted in our Plan to Win with a relentless focus on what matters most to our customers. We are enhancing the customer experience – from our menu and service to our value and convenience – while giving more people more reasons to visit McDonald’s more often.”
The corporation reported fourth-quarter profit of $1.38 billion or $1.33 per share i.e. up from $1.24 billion or $1.16 a share, prior year. However, analysts were expecting $1.30 per share as reported by Thomson Reuters I/B/E/S.
Revenue increased by 10% to $6.82 billion that is also above estimations of $6.81 billion. For the year 2011, global comparable sales increased by 5.6% and consolidated revenues goes up 12%.
Jim Skinner continued, “As we begin 2012, we are intensifying our efforts toward the global priorities that represent our greatest opportunities under the Plan to Win – optimizing and evolving our menu, modernizing the customer experience and broadening accessibility to our Brand. In 2012, we plan to invest about $2.9 billion of capital – roughly half dedicated to opening more than 1,300 new McDonald’s restaurants and the other half allocated to investing in our existing locations, including the reimaging of over 2,400 restaurants. I am confident that the investments we are making today will yield long-term value for our shareholders.”
Jim Skinner concluded, “I am pleased with McDonald’s 2011 results, which were achieved through the dedication of our Owner/Operators, suppliers and employees who provide an exceptional restaurant experience to the nearly 68 million customers we serve every day. McDonald’s begins 2012 with nearly nine years of positive momentum, a business model that delivers across a variety of market and economic conditions and global January sales that are expected to remain strong at 5.5% to 6.5%.”
McDonald’s Press Release