McDonald’s restaurants debuted in Croatia and Western Samoa during the first quarter, putting the Golden Arches in 91 countries, but conditions were tough in the U.S. for the Oak Brook-based fast food chain.
McDonald’s Corp. on Thursday reported healthy increases in revenues and profits for the period, but the growth came primarily from gains outside the United States.
Net income increased by 7 percent, to $301.6 million, or 42 cents a share, from $280.7 million, or 39 cents a share, a year earlier. Excluding the effect of a one-time charge due to an accounting change related to losses in Mexico, profits rose 11 percent, to $312.3 million, or 44 cents a share.
Revenues, which consist of sales at company-owned stores and fees from restaurants and affiliates, rose 12 percent, to $2.42 billion from $2.16 billion.
U.S. sales edged up 3 percent, less than half the 8 percent growth rate of the year-earlier period. The company said this year’s gain was attributable only to its 129 new locations.
For existing stores, the average sales figure declined, the company said, without disclosing the percentage of decline.
Competition in the industry has led to significant discounting. Additionally, McDonald’s said it has increased its staffing levels in an effort to improve customer service.
“. . . We do not expect dramatic changes in the U.S. competitive operating environment in the short term,” said Michael R. Quinlan, chairman and chief executive officer.
