There was�no reason for�investors to grimace�after fast food giant McDonald�s (MCD) showed that its revenue and profit can hold up even in a difficult economy.
�At $97.40, the fast food giant�s share price jumped 2.2% or $2.14 a share during morning market action Friday after the company reportedhigher�first-quarter earnings, better-than-expected�revenue and improved margins.
Last month, McDonald’s warned that it expected continued economic uncertainty, austerity measures in Europe and commodity and labor costs to affect its first-quarter operating income growth. Yet it still rose 9% in the quarter, excluding foreign currency translation, as sales grew 7% and margins improved.
The company also said it expects April global same-store sales to rise about 4%, after posting a 7.3% rise globally in the first quarter.
McDonald’s reported a first-quarter profit of $1.27 billion, or $1.23 a share, up from $1.21 billion, or $1.15 a share, during the same quarter last year, on revenue of $6.55 billion. Analysts polled by Thomson Reuters had most recently forecast earnings of $1.23 a share on revenue of $6.54 billion.
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