McDonald's 2Q Net Rose 15%; Sees July Same-Store Sales Up 4%-5% |
| Wall Street Journal - Jul 22, 2011 |
McDonald's Corp.'s (MCD) second-quarter earnings rose 15%, as the burger chain says it continues to build momentum, despite the economic headwinds challenging the fast-food industry.
McDonald's expects 4% to 5% growth globally in July same-store sales, which includes sales at restaurants open at least 13 months, even if temporarily closed. The summer boost follows a 5.6% same-store sales increase in the second quarter, led by strong results in June.
Shares of McDonald's rose 2.5% to $88.71 premarket and have risen 21% over the past year through Thursday's close.
McDonald's has consistently outperformed its competitors during and since the recession. Competitive pricing was part of what helped its growth during the economic downturn, but its increasingly diverse menu--ranging from value offerings to higher-margin products like blended-ice drinks, especially popular in the U.S.--have contributed to its positive results of late.
Same-store guest transactions increased 3.8% in the first half of the year, growing at about the same rate as last year.
U.S. same-store sales rose 4.5% in the second quarter. Internationally, where McDonald's is seen to have the most growth potential, same-store sales increased 5.9% in Europe and 5.2% in the Asia/Pacific, Middle East and Africa division.
Read Full Article from Wall Street Journal
- Posted: 2011-07-22 12:13:22
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