Two McDonald’s Corp. signature initiatives for 2010 — new beverages and restaurant remodels — drove the company’s strong financial performance, it said, sending second-quarter profit soaring 12 percent.
For the quarter ended June 30, McDonald’s net income totaled $1.23 billion, compared with $1.09 billion in the second quarter of 2009. Earnings per share increased 15 percent, rising to $1.13 in the second quarter, compared with 98 cents in the same quarter a year earlier.
Revenue increased 5 percent to $5.95 billion.
Global same-store sales jumped 4.8 percent, McDonald’s reported, including gains of 3.7 percent in the United States, 5.2 percent in Europe, and 4.6 percent in the company’s Asia-Pacific, Middle East and Africa division.
“What makes McDonald’s unique is the distinctive experience we’re creating for our customers through menu innovation, restaurant reimaging and operations excellence,” said chief executive Jim Skinner. “I am pleased with our second-quarter performance and confident in our ability to continue to deliver solid results. As we begin the third quarter, our momentum continues, with July comparable sales trending in-line with or better than second-quarter sales.”
Operating income rose 7 percent in McDonald’s U.S. business, which the company credited in large part to strong sales from its beverage lineup. McCafe Frappes, which debuted systemwide earlier this year, have sold well, and initial demand for the recently introduced Real Fruit Smoothies was so high that the company cancelled a planned nationwide sampling event. In many markets, a $1 any-size offer for soft drinks and sweet tea continued to drive traffic, McDonald’s said.
Oakbrook, Ill.-based McDonald’s is still moving forward with a plan to remodel several hundred restaurants in the United States. Large-scale remodeling contributed to strong performance in Europe, the company noted. That division’s operating income rose 9 percent in the second quarter, led by improved results at restaurants in France, Russia and the United Kingdom.
Operating income rose 19 percent in McDonald’s Asia-Pacific, Middle East and Africa division, where the company is focusing on value, expanding into new dayparts and adding new menu items. The company singled out Australia and China as particularly strong markets in the division.
McDonald’s operates or franchises more than 32,000 restaurants in more than 100 countries.
Contact Mark Brandau at [email protected].