|
 The performance adds fuel to McDonald's revival, after the chain had
seen its U.S. sales fall for two years up to the third quarter of
2015 following a series of missteps under former chief executive Don
Thompson, who left the world's biggest restaurant chain last year.
"Once upon a time, under previous leadership, it seemed like
McDonald's became a less nimble company where it took a really long
time to roll out new products and innovations," said Morningstar
analyst R.J. Hottovy.
New Chief Executive Steve Easterbrook implemented a turnaround plan
last year that involved making the menu simpler, improving service
times and raising worker wages.
McDonald's also launched all-day breakfasts in October in the United
States, a move aimed at countering increasing competition from
chains such as Wendy's Co, Starbucks Corp and Burger King.
"All-day breakfast positions us to regain market share we had given
up in recent years," Easterbrook said on a post-earnings conference
call, adding it would take at least six more months of positive
sales to cement a more sustained turnaround.
Sales at U.S. outlets open at least 13 months rose 5.7 percent in
the quarter ended Dec. 31 - the best quarterly growth in nearly four
years and far ahead of forecasts of 2.7 percent.
Shares rose 3 percent to a record of $121.90 on Monday.
CHINA BACK ON TRACK
In China, where McDonald's and rival Yum Brands Inc are still
recovering from a July 2014 food safety scandal, same-store sales
rose 4 percent, the second straight quarter of growth after four
quarters of falling sales.
The growth, however, was slower than the 26.8 percent jump in the
July-September quarter, when sales ticked up sharply against a steep
drop in the same period in 2014 immediately following the food scare
at key supplier OSI Group.
McDonald's and Yum, the parent of KFC and Pizza Hut, are slowly
turning things around in China, although same-restaurant sales for
both firms remain below pre-scandal levels, according to a Reuters
analysis of available data.
[to top of second column] |
"It's back to par rather than getting ahead too much, but it's good
for them to see stable sales," said Ben Cavender, Shanghai-based
principal at China Market Research Group.
He added it would be tough for the firm to re-ignite the kind of
rapid growth it enjoyed before 2012, as Chinese diners now had far
greater choice and often looked for more healthy options.
What's more, the recovery comes as the world's second-biggest
economy faces its weakest growth in 25 years, a slowdown that has
roiled global markets in the past few months.
Globally, McDonald's same-restaurant sales rose 5 percent, above the
3.2 percent expected by analysts polled by research firm Consensus
Metrix.
Fourth-quarter net income rose 9.9 percent to $1.21 billion, or
$1.31 per share, on revenue of $6.34 billion, handily beating
analysts' estimates.
The company also said it was exploring a sale of a portion of its
Japan business, confirming earlier reports on the move.
(Reporting by Sruthi Ramakrishnan in BENGALURU and Adam Jourdan in
SHANGHAI; Editing by Saumyadeb Chakrabarty and Kenneth Maxwell)
[© 2016 Thomson Reuters. All rights
reserved.] Copyright 2016 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
