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McDonald’s first quarter net income up

RBR Staff Writer Published 22 April 2013

Global fast food major McDonald’s has reported a net income of $1.27bn in the first quarter ended 31 March 2013, an increase of 1%, compared to a net income of $1.266bn in the same quarter last year.

Total revenues for the quarter increased by 1% to $6.6bn from $6.55bn in the same quarter last year.

For the reporting period, global comparable sales decreased by 1%.

Sales from company-operated restaurants remained relatively flat at $4.44bn, while revenues from franchised restaurants were $2.16bn, up by 2% from a year ago.

Comparable sales in the US were down by 1.2% in the first quarter due in part to the challenging eating-out environment.

Despite this, McDonald's US outperformed the competition and increased market share with the Dollar Menu, expanded its menu variety with innovative new products and enhanced the customer experience through ongoing restaurant reimaging.

In the Europe, comparable sales declined by 1.1%, while operating income was up by 1%, led by performance in Russia and the UK, partially offset by Germany. Europe's results were hit by ongoing economic uncertainty.

Asia/Pacific, Middle East and Africa (APMEA) region reported a 3.3% decline in comparable sales, and a 1% drop in operating income, primarily due to ongoing weakness in Japan and negative results in China.

Looking ahead, Thompson McDonald's president and chief executive officer Don Thompson said for the month of April, global comparable sales are expected to be slightly negative.

"We are confident that we have the right plans in place to differentiate the McDonald's experience and strengthen our business momentum for the long term," Thompson added.