McDonald's Corporation announced strong operating results for the second quarter ended June 30, driven by positive global comparable sales in every area of the world. In constant currencies, the company posted higher revenues, operating income, and earnings per share compared with the prior year.
"We're driving results by staying focused on our global business strategy, the Plan to Win," says McDonald’s CEO Jim Skinner. "In today's economic environment, our performance speaks to the strength of our plan and McDonald's ongoing commitment to our customers around the world."
Second quarter highlights reported by McDonald's included: global comparable sales increased 4.8 percent with the U.S. up 3.5 percent, Europe up 6.9 percent, and Asia/Pacific, Middle East, and Africa up 4.4 percent; consolidated operating income increased 2 percent (11 percent in constant currencies); and approximately $1.4 billion returned to shareholders through share repurchases and dividends
"As consumers find themselves more cash-strapped and time-challenged, they continue to count on McDonald's for value, convenience, and variety across our menu,” Skinner says. “The ongoing appeal of McDonald's is a testament to the dedication of our owner/operators, suppliers, and employees who provide an exceptional restaurant experience for each customer, every time."
McDonald's U.S. delivered solid comparable sales for the second quarter and drove operating income up 5 percent. The U.S. business gained market share during the quarter with a balanced focus on classic menu options like the Big Mac, beverage value offerings, and the national launch of the McCafe premium coffee line-up.
McDonald's Europe delivered strong second quarter comparable sales led by performance in the U.K., France, and Russia. In constant currencies, Europe's second quarter operating income rose 10 percent.
In Asia/Pacific, Middle East, and Africa (APMEA), Australia led the segment's second quarter operating income increase of 34 percent in constant currencies. Emphasis on core menu favorites, convenience, value, and breakfast, along with a sharp focus on improving operations and customer service, contributed to results.
"I am pleased with McDonald's results and remain confident in our outlook for the year,” Skinner says. “As we begin the third quarter, we expect to report July consolidated comparable sales similar to or better than June."