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By MELODIE WARNER
McDonald's Corp.'s MCD -2.16% first-quarter earnings rose 4.8% on strong sales gains and improved profit margins.The world's largest fast-food chain has been able to boost guest traffic and sales faster than most of its competitors with its increasingly diverse menu—ranging from value-price offerings to higher-margin products like blended-ice drinks—and its growing global operations.McDonald's on Friday reported a profit of $1.27 billion, or $1.23 a share, up from $1.21 billion, or $1.15 a share, a year earlier. Revenue jumped 7.1% to $6.55 billion. Excluding currency fluctuations, revenue was up 8%.Analysts polled by Thomson Reuters had most recently forecast earnings of $1.23 on revenue of $6.54 billion.Operating margin edged up to 30% from 29.9%.Global sales at outlets open more than a year increased 7.3% and benefited from one extra day due to leap year. By region, same-store sales were up 8.9% in the U.S., 5% in Europe and 5.5% in Asia-Pacific, Middle East and Africa.The company also said it expects April global same-store sales to rise about 4%.The company has said it will roll out smoothies to more countries and increase its breakfast business in Europe this year, and in January it launched a new popcorn chicken called Chicken McBites in the U.S.Chief Executive Jim Skinner last month announced his retirement after 41 years with the company, allowing President and Chief Operating Officer Don Thompson to take the helm in July. On Monday, McDonald's said Asia, Pacific, Middle East and Africa Division President Tim Fenton will succeed Thompson as its chief operating officer, making him the second in command.
McDonald's Corp.'s MCD -2.16% first-quarter earnings rose 4.8% on strong sales gains and improved profit margins.The world's largest fast-food chain has been able to boost guest traffic and sales faster than most of its competitors with its increasingly diverse menu—ranging from value-price offerings to higher-margin products like blended-ice drinks—and its growing global operations.McDonald's on Friday reported a profit of $1.27 billion, or $1.23 a share, up from $1.21 billion, or $1.15 a share, a year earlier. Revenue jumped 7.1% to $6.55 billion. Excluding currency fluctuations, revenue was up 8%.Analysts polled by Thomson Reuters had most recently forecast earnings of $1.23 on revenue of $6.54 billion.Operating margin edged up to 30% from 29.9%.Global sales at outlets open more than a year increased 7.3% and benefited from one extra day due to leap year. By region, same-store sales were up 8.9% in the U.S., 5% in Europe and 5.5% in Asia-Pacific, Middle East and Africa.The company also said it expects April global same-store sales to rise about 4%.The company has said it will roll out smoothies to more countries and increase its breakfast business in Europe this year, and in January it launched a new popcorn chicken called Chicken McBites in the U.S.Chief Executive Jim Skinner last month announced his retirement after 41 years with the company, allowing President and Chief Operating Officer Don Thompson to take the helm in July. On Monday, McDonald's said Asia, Pacific, Middle East and Africa Division President Tim Fenton will succeed Thompson as its chief operating officer, making him the second in command.
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