McDonald's

McDonald's swings to second-quarter profit
By William Spain, MarketWatch
Last update: 10:53 a.m. EDT July 23, 2008
CHICAGO (MarketWatch) -- McDonald's Corp. swung to a stronger-than-expected second-quarter profit from a year-earlier loss, boosted by international sales and solid domestic results on the back of longer store hours, brisk traffic and new menu offerings like its Southern Style Chicken sandwich and biscuit line.
Before the start of trading on Wednesday, the Oak Brook, Ill., fast-food giant, (MCD:
MCD a member of the Dow Jones Industrial Average, reported profit of $1.19 billion, or $1.04 a share, compared with a loss of $711 million, or 60 cents, in the year-earlier period.

The latest results include a gain of 10 cents a share related to the sale of its stake in sandwich chain Pret A Manger.
Revenue rose 4% to $6.08 billion, with global same-store sales -- those from outlets open at least a year -- up 6.1%.
The average estimate of analysts polled by Thomson Reuters Research had been 86 cents a share of profit on revenue of $5.92 billion.
"We're operating from a position of strength with double-digit operating-income growth in Europe and Asia/Pacific, Middle East and Africa and solid quarterly results in the U.S.," said Chief Executive Officer Jim Skinner.
In the U.S., McDonald's same-store sales rose 3.4% for the quarter, in the face of economic uncertainty and sky-high gasoline prices.
McDonald's has been benefiting from new menu items, expanded hours and the tendency of cash-strapped consumers to "trade down" from pricier eating-out options in the U.S.
Overseas, it has benefited from expansion and organic growth in key markets like Australia, China and Japan, along with the currency benefits of a weak U.S. dollar.
Last month, the company reported that May sales breezed past Wall Street expectations. The figures showed the company's relative resilience in the face of the economic slowdown.
Shares of McDonald's have been holding steady during the recent market downturn as well. The stock hit a 52-week low of $46.64 almost a year ago and crested at $63.69 in December. It was up about 1% at $60.60 in early action Wednesday.