| Page 2 of 2 < |
McDonald's 4Q Profit Doubles
Skinner said the company will invest nearly $2 billion this year to open the new restaurants and improve existing locations.
About 50 of the new restaurants in China will feature drive-throughs.
  Pedestrians walk by the McDonald's restaurant in Torino, Italy on a rainy Saturday, Feb. 25, 2006. McDonald's fourth quarter profits more that doubled, thanks in part to a spin-off burrito chain and strong sales in Europe. (AP Photo/Amy Sancetta) (Amy Sancetta - AP) Partnership
Resources for anyone who runs a small business or wants to start one, featuring advice and solutions.
• Where to Secure Micro'Business Financing
• Starting a Business Updated Financial Features |
• "In China, our key growth market, our focus is simple _ cementing brand preference for Chinese consumers through key competitive advantages," said CEO Jim Skinner.
UBS analyst David Palmer said McDonald's had better-than-expected profit margins, which increased for the fourth consecutive quarter.
"Margin expansion should continue in 2007, and solid growth in the U.S. behind high-margin breakfast should help," he wrote in a research note published Wednesday. "We also believe European growth can remain solid."
Earlier this month, McDonald's said its European operation had its best year in nearly 15 years with a 5.8 percent comparable sales increase in 2006. For the quarter, European sales climbed 7.3 percent.
In the U.S., same-store sales, an important retail measure that compares stores open at least a year, increased 5.9 percent for the quarter.
Laurie Hahn, an analyst at Deutsche Bank Securities, said the company's new chicken snack wrap and extended hours are helping to increase the value of the McDonald's brand.
"In short, we see continued progress on strengthening brand equity," she wrote in a research note.
McDonald's said it was on track with a three-year plan to increase the number of restaurants operated as franchises. The program, announced last year, hopes to turn 2,300 company-owned restaurants _ mostly in Canada and the U.K. _ into franchises over the next two years.
Executives said they expect the company to have annual sales growth of up to 5 percent.
McDonald's shares fell 69 cents, or 1.54 percent, to close at $44.16 on the New York Stock Exchange.
___
On the Net:
