McDonald's Corp. announced strong results for the fourth quarter and year ended Dec. 31, 2011, fueled by broad-based growth across all areas of the world. The company posted higher revenues, operating income and earnings per share compared with the prior year.
"During 2011, McDonald's continued momentum drove higher profitability and market share gains as we fortified our leadership position around the world," said McDonald's Chief Executive Officer Jim Skinner in a prepared statement. "The ongoing strength of McDonald's results is rooted in our Plan to Win with a relentless focus on what matters most to our customers. We are enhancing the customer experience – from our menu and service to our value and convenience – while giving more people more reasons to visit McDonald's more often."
Full year 2011 highlights included:
Global comparable sales increased 5.6 percent, with positive comparable sales across all geographic segments for every quarter.
Consolidated revenues up 12 percent (8 percent in constant currencies) to a record-high of $27 billion.
Combined operating margin increase of 60 basis points to 31.6 percent.
Consolidated operating income increase of 14 percent (10 percent in constant currencies) with the U.S. up 6 percent, Europe up 15 percent (10 percent in constant currencies) and APMEA up 27 percent (17 percent in constant currencies).
Diluted earnings per share of $5.27, up 15 percent (11 percent in constant currencies).
Returned $6.0 billion to shareholders through share repurchases and dividends
Global comparable sales increased 7.5 percent, with the U.S. up 7.1 percent, Europe up 7.3 percent and Asia/Pacific, Middle East and Africa up 6.9 percent.
Consolidated revenues increased 10 percent (10 percent in constant currencies).
Consolidated operating income increase of 14 percent (14 percent in constant currencies) with the U.S. up 15 percent, Europe up 10 percent (12 percent in constant currencies) and APMEA up 22 percent (19 percent in constant currencies).
Diluted earnings per share of $1.33, up 15 percent (15 percent in constant currencies).
McDonald's U.S. delivered strong results for the fourth quarter and year, including the segment's highest annual comparable sales performance since 2006. Throughout 2011, the U.S. reinforced the company's dedication to everyday value, showcased core and new product offerings, increased convenience and further upgraded McDonald's restaurant portfolio with fresh, modern designs that enhance brand relevance.
Europe generated strong comparable sales results and market share gains for the quarter and year in the face of ongoing economic uncertainty. France, the U.K., Russia and Germany led the segment's operating income growth for both periods. Emphasis on unique promotional food events, fourth-tier menu development and restaurant reimaging continued to provide an appealing customer experience and contributed to the segment's performance.
Asia/Pacific, Middle East and Africa posted strong comparable sales for the quarter and year and delivered double-digit operating income growth for both periods, led by stronger results in many markets. Results across the segment were driven by robust value platforms, brand differentiating conveniences and locally-relevant menu options.
Jim Skinner continued, "As we begin 2012, we are intensifying our efforts toward the global priorities that represent our greatest opportunities under the Plan to Win – optimizing and evolving our menu, modernizing the customer experience and broadening accessibility to our Brand. In 2012, we plan to invest about $2.9 billion of capital – roughly half dedicated to opening more than 1,300 new McDonald's restaurants and the other half allocated to investing in our existing locations, including the reimaging of over 2,400 restaurants. I am confident that the investments we are making today will yield long-term value for our shareholders."
Jim Skinner concluded, "I am pleased with McDonald's 2011 results, which were achieved through the dedication of our Owner/Operators, suppliers and employees who provide an exceptional restaurant experience to the nearly 68 million customers we serve every day. McDonald's begins 2012 with nearly nine years of positive momentum, a business model that delivers across a variety of market and economic conditions and global January sales that are expected to remain strong at 5.5 percent to 6.5 percent."