Australia a standout amid solid McDonald’s results

Posted by Daniel Palmer on 24th July 2009

McDonald’s Corporation has continued to prosper during the global recession, announcing higher revenues and profit for the second quarter compared to last year – after stripping out the impact of currency movements. They did, however, find greater growth resistance last month, which ensured their second quarter could not top an outstanding performance in the three months to March.
“In today’s economic environment, our performance speaks to the strength of our plan and McDonald’s ongoing commitment to our customers around the world,” Chief Executive Officer Jim Skinner suggested. “As consumers find themselves more cash-strapped and time-challenged, they continue to count on McDonald’s for value, convenience and variety across our menu.”

In Asia/Pacific, Middle East and Africa (APMEA), Australia was the catalyst for the segment’s second quarter operating income increase of 34% in constant currencies. The growth down under has been remarkable over the past year and shows no signs of abating. Emphasis on core menu favourites, convenience, value and breakfast were key contributors to results.

McDonald’s U.S. delivered operating income growth of 5% thanks to core menu options like the Big Mac and the launch of the McCafe premium coffee line-up, while European performance was robust.

Despite not being “completely immune” from the impact of economic turbulence, the fast-food chain remains bullish about the rest of the year.

“I am pleased with McDonald’s results and remain confident in our outlook for the year,” Mr Skinner said. “As we begin the third quarter, we expect to report July consolidated comparable sales similar to or better than June.”