Mighty Wings help lift McDonald’s earnings
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OAK BROOK, ILL. – The launch of Mighty Wings helped lift sales and income for the McDonald’s Corp. during the third quarter.
Net income during the quarter ended Sept. 30 was $1,522,200,000, equal to $1.52 diluted earnings per share, up 4.6% from $1,455,000,000, or $1.43 diluted earnings per share, during the same period in fiscal 2012. Net revenues increased 2.4% to $7,323,400,000 from $7,152,400,000 last year.
"Our unwavering commitment to providing an outstanding restaurant experience to every customer, every time guides our plans and keeps our customers at the forefront of all we do," said Don Thompson, president and chief executive officer. "We are focused on delivering what our customers want most in any environment -- great-tasting food served in a contemporary, inviting atmosphere at the speed and convenience that is in tune with today's busy lifestyles. For the quarter, our results reflect McDonald's ability to grow amid the broad-based challenges of the current environment by focusing on those areas of the business within our control."
During the quarter, U.S. comparable sales rose 0.7% and operating income increased 5% on the success of the Monopoly promotion and the limited-time introduction of Mighty Wings. Looking ahead, McDonald’s said it is focused on leveraging new chicken, beef and beverage options to boost sales and profitability.
In Europe, a 0.2% growth in comparable sales and an 11% increase in operating income reflected strength in the United Kingdom, Russia and France, offset by weakness in Germany. Efforts to improve sales in the region going forward include enhancing value platforms and improving menu innovation and marketing.
The Asia/Pacific, Middle East and Africa region saw a 1.4% decline in sales and a 12% drop in operating income during the quarter due to weakness from a challenging operating environment in China, Japan and Australia. McDonald’s is working to accelerate growth in breakfast and late-night day parts, improving accessibility and convenience and opening new restaurants in the region.
With ongoing challenges in the marketplace, McDonald’s said it expects flat global comparable sales for October.
“While we are focused on strengthening our near-term performance, the current environment continues to pressure results,” Mr. Thompson said. “Around the world, we remain confident in our ability to drive sustained, long-term profitable growth through our global growth priorities - optimizing the menu, modernizing the customer experience and broadening accessibility. Moving forward, we are committed to enhancing shareholder value through disciplined investments that support our long-term growth opportunities and further differentiate brand McDonald's.”