McDonald's Posts $1.51B Profit in Q3
The world's largest fast-food company McDonald's Corp. on Friday said its net income has reached more than $1.51 billion in the third quarter of this year on the back of higher global sales and new menu offerings.
Fast-food giant McDonald's Corp. on Friday said its net income has reached more than $1.51 billion in the third quarter of this year on the back of higher global sales and new menu offerings.
In a statement, McDonald's said its third quarter earnings rose to about $1.51 billion or $1.45 per share in July to September 2011, up from the $1.39 billion or $1.29 per share a year ago -- beating earlier analysts' forecast of $1.43 per share.
The fast-food giant's earnings per share grew by over 12 percent year-on-year, but was only higher by 6 percent excluding foreign currency benefits.
Meanwhile, the company's revenue rose by at least 13.8 percent to $7.17 billion during the quarter with sales at established restaurants increasing by 5 percent worldwide.
The US accounted for the biggest increase with 4.4 percent, followed by Europe with 4.9 percent and the Asia-Pacific, Middle East and Africa region with 3.9 percent.
McDonald's attributed the outstanding growth to improvements in food quality and menu, and benefitted from shift in preferences of people who have been looking for cheaper alternatives.
Experts said the by adding the so-called "dollar menu," McDonald's was able to acquire more customers from its rivals -- through the introduction of high-margin beverages such as coffee and fruit smooties.
Also, modernization of its restaurant chains in the United States and Europe helped boost sales and made operations more efficient.