In Today's Installment of "It's the Little things": McDonalds 1Q Profits Higher than Expected

[Clio the Leo]

I'm goin' on a McFlurry run! Who's with me!

McDonald's 1Q profit up 4%
By James P. Miller | Tribune staff reporter
7:46 AM CDT, April 22, 2009
McDonald's Corp., helped by market-share increases both in its home market and overseas, bucked a global recession and the negative impact of a strengthening U.S. dollar by reporting a stronger-than-expected first-quarter earnings increase Wednesday.

In the latest quarter, the Oak Brook fast-food company had net income of $979.5 million, or 87 cents a diluted share, up from the year-ago quarter's $946.1 million, or 81 cents a share.

Excluding the help of a 4-cent-a-share onetime gain from the sale of an investments, McDonald's per-share earnings were 83 cents -- a penny above analyst forecasts.

Profits were up even though revenues, dampened by unfavorable currency-translation on the company's extensive overseas sales, dropped 9.6 percent to $5.08 billion from $5.61 billion.

McDonald's said per-share earnings were reduced by 8 cents by currency issues in the latest quarter.

"Comparable-store sales" -- those at restaurants open at least twelve months -- climbed 4.7 percent in the U.S. during the latest quarter, McDonald's said; on a constant-currency basis, comp-store sales rose 3.2 percent in Euope, and strengthened in the Asia/Pacific region by 5.5 percent.

While operators of higher-end restaurants have been hard hit as recession-weary customers stay home to save money, McDonald's said its U.S. operation "continues to gain market share as consumers visit McDonald's more often."

The company's business "remains strong, despite the economic concerns around the world," said Chairman and Chief Executive Officer Jim Skinner.

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http://www.chicagotribune.com/business/chi-biz-mcdonalds-earns-mcd-april22,0,4080813.story