McDonald's Posts Profit Above Estimates, US Sales Slow

By Dan Keane
15:59, April 22nd 2008
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McDonald's Posts Profit Above Estimates, US Sales Slow

The world's largest chain of fast food restaurants, McDonald's, has posted first-quarter profit past analyst expectations, mainly due to strong overseas sales. At the same time, the fast food giant has recorded its first drop in U.S. comparable-store sales in five years.

McDonald's Corp. said first quarter profit was up 24 percent compared to last year's quarter, which translates into a net income of $946.1 million, or 81 cents a share, up from $762.4 million, or 62 cents a share, last year. The company's revenue climbed 6.1 percent to a strong $5.61 billion.

The company also plans to install coffee bars selling lattes, cappuccinos, mochas and other drinks at all its U.S. locations within the next two years, which amounts to the most significant change in McDonald's menus in its recent history.

"We delivered strong first-quarter results, driven by comparable sales and guest count increases across all geographic segments and outstanding international operating performance," Chief Executive Jim Skinner said in a statement.

McDonalds managed to keep up with customer demands over the last few years through lower-priced foods and healthier salads and chicken sandwiches as well as longer hours of operation and restaurant renovations. The company was founded in 1940 with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California. Now the chain serves more than 50 million customers each day around the world.



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