McDonald’s reports small Q2 gains
Oak Brook, Ill. -- McDonald’s Corporation reported modest global gains in net income, revenues and same-store sales during the second quarter of fiscal 2013. Both its profit and revenue trailed analysts’ estimates.
The fast-food giant earned a consolidated net income of almost $1.4 billion during the quarter, a 5% increase from about $1.35 billion in the same quarter a year earlier. Those earnings came from consolidated revenues of $7.08 billion, which were up 2% from about $6.91 billion a year earlier. Consolidated same-store sales rose 2%.
In the U.S., same-store sales rose 1%, with new product introductions across the four key growth categories of chicken, beef, breakfast and beverages, ongoing support for the Dollar Menu and greater accessibility to McDonald's classic core favorites supporting the segment's sales performance, partially offset by comparison to promotional activity in the previous year.
In Europe, same-store sales were down 0.1% as negative results in Germany and France were nearly offset by solid performance in the U.K. and Russia. In Asia/Pacific, Middle East and Africa (APMEA), second quarter comparable sales declined 0.3% primarily due to negative results in China, Australia and Japan nearly offset by positive performance in many other markets.
"McDonald's results for the quarter reflect our efforts to strengthen our business momentum for the long-term," said McDonald's president and CEO Don Thompson. "We remain strategically focused on the global growth priorities that help us better serve our customers. While the informal eating out market remains challenging and economic uncertainty is pressuring consumer spending, we're continuing to differentiate the McDonald's experience by uniting consumer insights, innovation and execution."
However, Thompson cautioned that global same-store sales for this month are expected to be relatively flat and may be challenged for the rest of the year, although he is confident long-term profitability is not threatened.