McDonald’s net income goes downJuly 24th, 2012 - 1:06 pm ICT by IANS
Chicago, July 24 (IANS) McDonald’s Corp. reported Monday a four-percent year-over-year profit decline for the 2012 second quarter as a higher US dollar and slowing global economy affected company performance.
According to a filing with the US Securities and Exchange Commission, McDonald’s second-quarter net income totalled $1.347 billion, or $1.32 per share. That compared to the $1. 41-billion profit notched in the same period last year, or $1.35 per share, reported Xinhua.
Meanwhile, McDonald’s reported quarterly sales gains in all its three international regions.
The company’s US sales was up 3.6 percent for the quarter, while sales in Europe went up 3.8 percent. Sales in the company’s Asia/Pacific, Middle East and Africa division were pressured by weakness in Japan, but due to strength in China and Australia still posted a 0.9-percent increase.
McDonald’s total revenue for the 2012 second quarter was essentially flat compared to last year, rising 0.15 percent to $6.916 billion.
According to the fast food giant, foreign currency translation cut seven cents a share from earnings, a testament to the recent rise in the dollar. A stronger greenback can hurt international companies, as they often lose money when converting local currencies back into the dollar.
McDonald’s noted that if the data were to exclude currency translation, the company would have actually posted a five-percent revenue increase in the second quarter, and a one-percent profit increase.
“McDonald’s global comparable sales remained solid for the quarter while overall results reflected the slowing global economy, persistent economic headwinds and the investments we’ve made to enhance restaurant operations and provide customers the everyday value they have come to expect from McDonald’s,” said the company’ s Chief Executive Officer Don Thompson.
Headquartered in Oak Brook, Illinois, McDonald’s has more than 33,500 restaurants operating in 119 countries and regions.
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