McDonald's income rises but company faces challenges ahead
July 22, 2013
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OAK BROOK, ILL. — Income at McDonald’s Corp. rose 4% during the second quarter while sales were nearly flat. The company also said results for the full year will face challenges.
For the quarter ended June 30, the company had income of $1,396.5 million, equal to $1.38 per share on the common stock, which compared with $1,347.0 million, equal to $1.32 per share, during the same quarter of the previous year. Revenue for the quarter was $7,083.8 million, up 2% from $6,915.9 million during the same quarter of the previous year.
“McDonald's results for the quarter reflect our efforts to strengthen our business momentum for the long-term,” said Don Thompson, chief executive officer. “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.”
In the United States, second-quarter comparable sales rose 1% with operating income flat. The company said new product introductions and support for the dollar menu contributed to the results.
For the six months ended June 30, the company saw income rise 2% to $2,666.7 million, equal to $2.64 per share, which compared with $2,613.7 million, equal to $2.54 per share, during the same period of the previous year. Revenue for the six months was $13,689.1 million, up 2% from $13,462.5 million during the same period of the previous year.
“While our consolidated results this quarter were positive, global comparable sales for July are expected to be relatively flat,” Mr. Thomson said. “Based on recent sales trends, our results for the remainder of the year are expected to remain challenged. Throughout McDonald's history, we have succeeded in a variety of operating and economic environments. I am confident that our system, global infrastructure and the unique and evolving McDonald's brand experience will enable us to deliver sustained profitable growth for the long-term.”