Net income for the quarter dropped to $530.4 million, or 42 cents a share, from $590.7 million, or 47 cents, compared to the same period one year earlier. That figure includes 9 cents of incremental tax expenses that resulted from the repatriation of about $3.2 million in foreign earnings, much of which, the company said, would go to wages in the United States. Earnings would have been 51 cents a share, which matched the average estimate of analysts, if the tax charge was excluded.
While revenues for the period ending June 30 were up to $5.1 billion from $4.79 billion a year earlier, chief executive Jim Skinner said the company continues to face challenges in Britain and Germany, where sales increases were a lackluster 1.3%. The September rollout of toasted deli-style sandwiches in Britain along with a marketing campaign should help bolster sales there, the company said.
"We are positioned well for the future and confident with the changes that we've made and the focus on our customers and restaurants that we'll continue to be successful," Skinner told analysts in a conference call Thursday.
In the United States, which makes up more than 40% of the 30,000 McDonald's worldwide, sales were helped by the introduction of several new products, including entrée-sized salads, white-meat chicken McNuggets and McGriddles breakfast sandwiches, which helped increase the average amount spent by customers.
The hamburger chain said it plans to introduce more menu items to help keep one step ahead of its fast-food competitors.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.