McDonald's Earnings Rise 2% on McRib, Coffee Sales

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McRibMcDonald's (MCD) fourth-quarter net income rose 2 percent as it brought in more customers with its McRib sandwich and an addition to its successful McCafe coffee lineup.

The company based in Oak Brook, Ill., has kept sales growing as competitors like Wendy's/Arby's Group Inc. and Burger King have struggled. Its limited-time products, like the McRib, and low-cost menu items have continued to draw in customers.

The world's biggest burger chain earned $1.24 billion, or $1.16 per share, for the period ended Dec. 31. That's up from $1.22 billion, or $1.11 per share, a year ago.

Revenue climbed 4 percent to $6.21 billion.

The performance met the expectations of analysts surveyed by FactSet.

But investors may have been looking for more. McDonald's Corp.'s stock dipped 22 cents to $74.79 in premarket trading on Monday. The stock hit its all-time high of $80.94 in early December.

Sales at U.S. stores open at least 13 months increased 4.4 percent as the company rolled out its Caramel Mocha. Worldwide, the figure rose 5 percent on strength in Asia.

The increases were smaller than in the third quarter, when the figure rose 5.3 percent in the U.S. and 6 percent worldwide.

This figure is a key indicator of a restaurant operator's health because it measures results at existing locations instead of newly opened ones. McDonald's said its U.S. sales were hurt in December by bad weather. It expects global sales at stores open at least 13 months will rise 4 percent to 5 percent in January.

For the year, McDonald's net income climbed 9 percent to $4.95 billion, or $4.58 per share, from $4.55 billion, or $4.11 per share. Revenue improved to $24.07 billion from $22.74 billion.

McDonald's CEO Jim Skinner said in a statement that in 2011 the company plans to use about half of its $2.5 billion in capital spending to open about 1,100 new restaurants. The rest will be invested in existing locations.

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gwc54

Maybe you love McDonalds or maybe you hate them but what you don't get is their wealth does NOT come from manipulation of the masses. They have a market and they saitisfy that market. I read a Ray Crock quote once where he said, " I don't know what the public will be eating in 50 years but we plan to sell more of it than anyone else." So whine about it all you want. They will only change their menu as you change what you buy.

January 24 2011 at 8:04 PM Report abuse rate up rate down Reply
kimmergal

My fav meal at McDonlads is side salad and a grilled chicken barbque wrap. Scrape out the contents of the wrap on the salad. Toss the wrap and this yummy salad is less than 200 calories. With a yogurt side or a small smoothie - healthy meal under 500 calories.

January 24 2011 at 7:54 PM Report abuse rate up rate down Reply
John and Carrie

Mc Donalds food is horrible, and costs too much for what you receive.
I was driving home from "Micky D's" with my little girl who wanted a
crappy, er....a happy meal, LOL, and she threw the um,...food out the
window. I said HONEY, WHAT did you do that for? she said
ITS GROSS, Daddy ! I started laughing,.....
Wisdom from babies.

January 24 2011 at 6:02 PM Report abuse rate up rate down Reply
New Mortgage Cor

Think I will eat my super sized meal while I bask in my republican victory.

January 24 2011 at 5:53 PM Report abuse +1 rate up rate down Reply
1 reply to New Mortgage Cor's comment
gwc54

What does McDonalds have to do with Republicans? Most people I see eat there don't pay taxes.

January 24 2011 at 8:06 PM Report abuse rate up rate down Reply
selecteddesign

McDonalds has nothing to do with ruining anyone. Eating habits start at home and at the dinner table every night with the whole family. McDonalds just picked up where mom/dads left off. Best diet ever is to look in the mirror and STOP filling your cake-hole!

January 24 2011 at 5:16 PM Report abuse +2 rate up rate down Reply
mrouxman

MacDonalds and other chains are cashing in on ruining our health! Read the stats! Buy your coffin at Walmart!

January 24 2011 at 5:10 PM Report abuse -1 rate up rate down Reply
1 reply to mrouxman's comment
gwc54

McDonalds and other chains don't ruin your health. You ruin your health.

January 24 2011 at 8:07 PM Report abuse rate up rate down Reply
selecteddesign

Two all beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun.

January 24 2011 at 5:08 PM Report abuse +1 rate up rate down Reply
KAWKAW

I LOVE reading these comments! So many people trying so hard to appear intellegent and knowledgeable, only to show their ignorance in spelling grammar,
and even pronunciation (by their spelling)of them big ole words they's trying to show us they know.

January 24 2011 at 4:49 PM Report abuse rate up rate down Reply
1 reply to KAWKAW's comment
mrouxman

intellegent is spelled intelligent AHOLE! LMFAO! YOU'RE A TOOL!

January 24 2011 at 5:14 PM Report abuse +1 rate up rate down Reply
KAWKAW

We Americans want our independence, no one tell us what to do. Yet, there are do gooders who want the government to tell private entities wht the can / must sell us. Actually strong arming McDonald's into doing away with super sizing meals. Yeah, that worked. It never went away, just done under the table. If I want a sala I'll go buy a $1 head of lettuce. I WILL NOT hand over $5 to high school kid for a fistful. Our neighborhood McDonalds has 1 salad dressing. At least give a variety if you want to push it. You have done so with the sundaes, chocolate only. The decent, lean burger are $5-$6 alone. It's much cheaper to buy the bad stuff, especially when you have a family. People will buy what people want. We are not their parents to tell them what and what not to eat........Same to ya.

January 24 2011 at 4:41 PM Report abuse -1 rate up rate down Reply
Danny

W T G America lets keep this fat trend rolling!!!

January 24 2011 at 4:24 PM Report abuse +1 rate up rate down Reply