McDonald's on Friday reported better-than expected profits for the third quarter, as the fast-food giant weathered a sluggish global economy. McDonald's posted a nine percent increase in net income from a year earlier, to $1.51 billion, and a 12 percent hike in earnings per share, to $1.45. The results were better than analyst forecasts of $1.43 per share.
Revenues of $7.17 billion were 14 percent higher than the third quarter of 2010, boosted by 4.4 percent sales growth in the key US market and 4.9 percent in Europe. "The investments we are making to optimise our menu, modernise the restaurant experience and broaden McDonald's accessibility with ongoing convenience and value platforms are driving profitable market share growth," said chief executive Jim Skinner in a statement. The company cited investments in premium beverages in its McCafe menu, and "wholesome" breakfast offerings like oatmeal and its Egg McMuffin breakfast sandwich.
In Europe, it said it scored a 15 percent increase in operating income, or six percent in constant currency, helped by promotions and modernising its restaurants, especially in France, Russia, Germany and Britain. In late September the company also decided to increase its quarterly dividend by 15 percent to 70 cents a share, starting from the fourth quarter.