McDonald’s Corp. beat Wall Street expectations by a penny with its third-quarter earnings, reporting net income rose 12 percent to $540.9 million, or 39 cents a diluted share.
For the same period last year, the Oak Brook-based fast-food giant reported net income of $482.2 million, or 34 cents a diluted share.
Systemwide sales, which includes franchised, company-operated and affiliated stores, was just under $10 billion, up 8 percent. Revenue rose 7 percent, to $3.44 billion.
McDonald’s said its U.S. and European restaurants accounted for about 80 percent of its operating income. Operating income in Asia rose 9 percent, while Latin American markets were hurt by currency devaluations and economic problems in Brazil.
Third-quarter U.S. sales rose 5.8 percent, to $4.87 billion, helped in part by an “Inspector Gadget” movie promotion.
In a conference call with analysts Thursday, McDonald’s Chief Financial Officer Michael Conley said the company was on track to install its new Made-for-You cooking system in all of its U.S. restaurants by year-end.
MCDONALD’S CORP.
In millions except for per-share data
3rd Qtr. Sept. 30 1999 1998
Revenues 3,444.2 3,215.0
Net income (loss) 540.9 482.2
Per share (basic) .40 .35
Per share (diluted) .39 .34
9 mos. 1999 1998
Revenues 9,886.4 9,200.7
One-time loss a110
Net income (loss) 1,461.7 1,201.6
Per share (basic) 1.08 .88
Per share (diluted) 1.04 .85
Figures in 1998 reflect 2-for-1 stock split in March 1998.
a–Charge equivalent to 8 cents per diluted share from home office
productivity initiative.
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