McDonald's (MCD) Serves Up Q2 Beat as Comps Make Strong Rebound; Sees Strong July Growth
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Price: $101.54 --0%
EPS Growth %: +11.2%
Financial Fact:
Operating income: 1.95B
Today's EPS Names:
BORN, EFUT, ZOOM, More
EPS Growth %: +11.2%
Financial Fact:
Operating income: 1.95B
Today's EPS Names:
BORN, EFUT, ZOOM, More
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McDonald's (NYSE: MCD) shares are looking strong Friday morning following impressive earnings results amid robust growth in the U.S. and abroad.
First, in our quarterly preview, we noted most of the worry ahead of McDonald's quarter was based on the company's ability to grow same-store sales in the U.S. Goldman Sachs even said U.S. comps "have dipped to the 2%-3% range in recent months, behind the sustained 4%-6% range experienced pre-recession." Well, McDonald's may be back, as U.S. comps increased 4.5 percent, Europe rose 5.9 percent, and Asia/Pacific, Middle East and Africa jumped 5.2 percent.
Revenue in the quarter increased 16.2 percent to $6.905 billion, stronger than $6.63 billion expected by the Street.
Net income gained about 15 percent to $1.410 billion, or $1.35 per share. Earnings were seven cents better than the $1.28 per share expected.
Operating income rose 10 percent on a currency adjusted basis, led by "robust" performance in France, the U.K. and Russia. U.S. operating income increased 6 percent, unadjusted.
"McDonald's continued success reflects the fundamental strength of our business model and unprecedented alignment around our customer-focused strategies," said CEO Jim Skinner. "As we begin the third quarter, our momentum continues with July global comparable sales expected to be between 4 and 5 percent."
McDonald's is trading 2.6 percent better early Friday.
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First, in our quarterly preview, we noted most of the worry ahead of McDonald's quarter was based on the company's ability to grow same-store sales in the U.S. Goldman Sachs even said U.S. comps "have dipped to the 2%-3% range in recent months, behind the sustained 4%-6% range experienced pre-recession." Well, McDonald's may be back, as U.S. comps increased 4.5 percent, Europe rose 5.9 percent, and Asia/Pacific, Middle East and Africa jumped 5.2 percent.
Revenue in the quarter increased 16.2 percent to $6.905 billion, stronger than $6.63 billion expected by the Street.
Net income gained about 15 percent to $1.410 billion, or $1.35 per share. Earnings were seven cents better than the $1.28 per share expected.
Operating income rose 10 percent on a currency adjusted basis, led by "robust" performance in France, the U.K. and Russia. U.S. operating income increased 6 percent, unadjusted.
"McDonald's continued success reflects the fundamental strength of our business model and unprecedented alignment around our customer-focused strategies," said CEO Jim Skinner. "As we begin the third quarter, our momentum continues with July global comparable sales expected to be between 4 and 5 percent."
McDonald's is trading 2.6 percent better early Friday.
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