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McDonald’s Beats by a Penny
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McDonald’s Corporation (MCD - Analyst Report) posted second-quarter 2010 earnings of $1.13 per share ,beating the Zacks Consensus Estimate by a penny. The second quarter earnings surged 15% from 98 cents reported in the prior-year quarter.
The better-than-expected results were driven by value offerings and premium products, and a rise in comparable-store sales across all regions.
McDonald’s, the world's largest hamburger chain, said that revenue for the quarter climbed 5% to $6.0 billion, outperforming the Zacks Consensus Estimate of $5.9 billion.
Revenues from company-operated restaurants rose 4% to $4.0 billion, while revenues from franchise-operated restaurants jumped 8% to $1.9 billion. Total operating income soared 10% to $1.8 billion.
McDonald’s global comparable-store sales continue to grow, while maintaining healthy margins on an expanding market share. Global comparable-store sales rose 4.8% during the quarter with the U.S. sales up 3.7%, Europe up 5.2% and Asia/Pacific, Middle East and Africa (APMEA) up 4.6%.
The new menu offerings -- including value-based drinks, frappes and McCafe premium coffee line-up, along with the breakfast dollar menu -- have perked up U.S. comps and operating income (up 7%).
In Europe, the U.K., France and Russia led the operating income growth of 9%. The premium product innovation, marketing promotion and restaurant re-imaging program continued to drive market share gains. In APMEA, operating income jumped 19% led by Australia and China.
During the quarter, MCDonald’s returned shareholders $1.6 billion through share repurchases and dividend.
One of McDonald’s primary competitors, Yum! Brands, Inc. (YUM - Analyst Report) reported its second quarter 2010 earnings of 58 cents per share on July 13, which surpassed the Zacks Consensus Estimate of 54 cents. The earnings increased 17% year over year, mainly on the back of strong performances in its China division.
The better-than-expected results were driven by value offerings and premium products, and a rise in comparable-store sales across all regions.
McDonald’s, the world's largest hamburger chain, said that revenue for the quarter climbed 5% to $6.0 billion, outperforming the Zacks Consensus Estimate of $5.9 billion.
Revenues from company-operated restaurants rose 4% to $4.0 billion, while revenues from franchise-operated restaurants jumped 8% to $1.9 billion. Total operating income soared 10% to $1.8 billion.
McDonald’s global comparable-store sales continue to grow, while maintaining healthy margins on an expanding market share. Global comparable-store sales rose 4.8% during the quarter with the U.S. sales up 3.7%, Europe up 5.2% and Asia/Pacific, Middle East and Africa (APMEA) up 4.6%.
The new menu offerings -- including value-based drinks, frappes and McCafe premium coffee line-up, along with the breakfast dollar menu -- have perked up U.S. comps and operating income (up 7%).
In Europe, the U.K., France and Russia led the operating income growth of 9%. The premium product innovation, marketing promotion and restaurant re-imaging program continued to drive market share gains. In APMEA, operating income jumped 19% led by Australia and China.
During the quarter, MCDonald’s returned shareholders $1.6 billion through share repurchases and dividend.
One of McDonald’s primary competitors, Yum! Brands, Inc. (YUM - Analyst Report) reported its second quarter 2010 earnings of 58 cents per share on July 13, which surpassed the Zacks Consensus Estimate of 54 cents. The earnings increased 17% year over year, mainly on the back of strong performances in its China division.
Read the full analyst report on MCD
Read the full analyst report on YUM
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