McDonald’s Squeezes More Profit From Revenue Drop
Fast-food leader McDonald’s said Wednesday it pumped up first-quarter profit by four percent to 979 million dollars, despite a 10 percent decline in worldwide revenues.
The US-based hamburger maker did get a lift from a one-time gain from the sale of a stake in the Redbox DVD rental unit, but also said it boosted profitability and market share in many regions.
The earnings amounted to 87 cents per share, roughly in line with market expectations excluding the one-time gains.
Revenues fell 10 percent from a year earlier to 5.07 billion dollars, but same-store sales increased by 4.3 percent, with more consumers looking for value during the economic crisis, the Illinois-based firm said.
“McDonald’s continues to deliver a relevant restaurant experience that provides consumers with a broad range of quality menu choices, affordable prices and unmatched convenience,” said chief executive Jim Skinner.
“Our underlying business performance remains strong. In constant currencies, first-quarter results reflect higher revenues, operating income and earnings per share over the prior year.”
The company said profits rose despite the negative impact of a stronger dollar.
