OAK BROOK Ill. McDonald's Corp. on Monday reported a 23-percent plunge in fourth-quarter profit, primarily due to a year-ago tax benefit, but it was able to continue its string of positive same-store sales despite a weak economy.
For the Dec. 31-ended quarter, McDonald's posted net income of $985.3 million, or 87 cents per share. That compares with $1.3 billion, or $1.06 per share, a year ago, when income tax benefits boosted earnings by about 33 cents a share, the company said. Revenue for the latest quarter dipped 3 percent, to $5.6 billion, McDonald's reported.
The burger giant's per-share results easily topped the average analyst estimate of 83 cents a share, even though revenue fell short of the $5.7 billion anticipated by Wall Street, according to Thomson Financial.
"I am pleased with McDonald's 2008 results, which were achieved through the dedication of our owner/operators, suppliers and employees who provide an exceptional restaurant experience for our customers each and every day," said Jim Skinner, McDonald's chief executive. "McDonald's begins 2009 with six years of momentum, a business model that has delivered even in challenging economic conditions and January sales that remain strong."
McDonald's again pointed to its chicken products, breakfast, beverages and convenience for a global same-store sales increase of 7.2 percent for the fourth quarter. Same-store sales were up 5 percent in the United States, 7.6 percent in Europe and 10 percent in the Asia/Pacific, Middle East and Africa region.
For the full fiscal 2008, McDonald's net income rose 80 percent to $4.3 billion, or $3.76 per share, compared with profit of $2.4 billion, or $1.98 per share, in fiscal 2007. Revenue rose 3 percent to $23.5 billion.
Global same-store sales were up 6.9 percent in 2008, which reflected gains of 4 percent in the U.S. same-store sales, 8.5 percent in Europe, and 9 percent in Asia/Pacific, Middle East and Africa.
Looking forward, McDonald's said it expected to open about 1,000 units worldwide in fiscal 2009. The Oak Brook, Ill.-based company currently operates or franchises more than 31,000 restaurants worldwide.
Contact Molly Gise at [email protected].