McDonald's 3Q profits rise 15%

10/20/06 - newratings.com

NEW YORK, October 20 (newratings.com) – The world's largest fast-food chain, McDonald's Corp (MCD), Thursday reported a 15% rise in its quarterly profits, helped by growth in premium coffee sales and healthy profit margins.

The Oak Brook, Illinois-based company said its net income for the three months ended September 30 rose to $843.3 million, or 68¢ per share, from $735.4 million, or 58¢ per share, in the year-ago quarter. McDonald's revenues climbed 10% to $5.88 billion in the quarter, from $5.33 billion in the same period a year earlier. The company's global comparable sales, or sales at restaurants open at least 13 months, rose 5.8%, with US sales helped by the addition of low-priced chicken wrap to the menu, extended hours and premium coffee.

McDonald's sales in Europe also rose for the eighth consecutive quarter, driven by strong results in Germany, France and Britain. McDonald's CEO Jim Skinner said the company aims at expanding at a modest pace, increasing the capacity of its US drive-thrus and launching new Happy Meal entrees and beverages, which would meet "appropriate nutritional guidelines."

The company's share price fell 70¢, or 1.69%, to close at $40.77 on Thursday on the NYSE.