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McDONALD'S REPORTS RECORD RESULTS; OPERATING RESULTS STRONG

 McDONALD'S REPORTS RECORD RESULTS;
 OPERATING RESULTS STRONG
 OAK BROOK, Ill., July 23 /PRNewswire/ -- McDonald's Corporation (NYSE: MCD) today announced record results for the six months and second quarter ended June 30, 1992:
 -- NET INCOME AND NET INCOME PER COMMON SHARE ROSE 10 PERCENT FOR BOTH PERIODS.
 -- SYSTEMWIDE SALES GREW 9 PERCENT FOR BOTH PERIODS.
 -- OPERATING INCOME INCREASED 10 PERCENT FOR THE SIX MONTHS, AND 8 PERCENT FOR THE QUARTER.
 KEY HIGHLIGHTS Six Months Ended June 30
 (Dollars in millions, except Increase
 per common share amounts) 1992 1991 $ Pct
 .Systemwide sales $10,302.5 $ 9,484.4 818.1 9
 .Total revenues $ 3,392.4 $ 3,228.6 163.8 5
 .Operating income $ 871.2 $ 793.3 77.9 10
 .Net income $ 441.5 $ 400.5 41.0 10
 .Net income per common share $ 1.20 $ 1.09 .11 10
 Second Quarter Ended June 30
 Increase
 1992 1991 $ Pct
 .Systemwide sales $ 5,386.9 $ 4,956.5 430.4 9
 .Total revenues $ 1,774.1 $ 1,670.8 103.3 6
 .Operating income $ 478.0 $ 441.1 36.9 8
 .Net income $ 254.1 $ 232.0 22.1 10
 .Net income per common share $ .69 $ .63 .06 10


SUMMARY COMMENTARY
 On a worldwide basis, McDonald's business continued to show improvement, and strong operating results made this another record quarter. The U.S. business benefitted from the ongoing impact of the value program established in 1991, coupled with major efforts in reducing operating and development costs. The international business recorded good results with the benefit of stronger foreign currencies in the second quarter, despite the recessions in Canada and England. CONSOLIDATED OPERATING RESULTS
 Systemwide sales represent sales by Company-operated, franchised and affiliated restaurants. The increases in Systemwide sales were due to new restaurant expansion and higher sales at existing restaurants worldwide. Stronger foreign currencies contributed to growth in the second quarter, while weaker foreign currencies impacted the first quarter.
 A total of 193 restaurants were added in 1992 (187 in 1991), including 143 outside of the U.S. (128 in 1991). An additional 201 restaurants were under construction at quarter-end (206 in 1991), including 149 outside of the U.S. (146 in 1991).
 The increases in Total revenues continued to register below the increases for Systemwide sales because of the sale of certain Company-operated restaurant businesses to franchisees.
 Company-operated restaurant margins improved to 18.5 percent of sales in 1992 from 17.0 percent one year ago. All costs, except occupancy which was flat, declined as a percent of sales. For the second quarter, these margins were 19.0 percent in 1992, and 18.0 percent in 1991.
 Franchised restaurant margins were 82.3 percent of applicable revenues for 1992, compared to 82.6 percent one year ago. For the second quarter, these margins were 83.0 percent in 1992 and 83.2 percent in 1991.
 The increases in general, administrative and selling expenses were due to higher employee costs associated with expansion, partially offset by a reduction in U.S. marketing costs associated with the value program.
 Other operating (income) expense--net is composed of operating transactions related to the business such as gains on sales of restaurant businesses, equity in earnings of unconsolidated affiliates, and other items.
 Six Months Second Quarter
 Ended June 30 Ended June 30
 1992 1991 1992 1991
 (In millions of dollars)
 Gains on sales of
 restaurant businesses $(21.3) $(36.3) $(14.4) $(19.3)
 Equity in earnings of
 unconsolidated affiliates (9.0) (36.3) (.1) (27.2)
 Other (10.6) (1.8) (15.5) (3.3)
 Other operating (income)
 expense--net $(40.9) $(74.4) $(30.0) $(49.8)
 The increases in Operating income reflected better results from franchised restaurants, stronger Company-operated restaurant margins and a lower rate of increase in general, administrative and selling expenses, partially offset by lower Other operating (income) expense--net.
 The decreases in interest expense were due to lower average debt balances and lower average interest rates, offset by a reduction in capitalized interest, and for the quarter, stronger foreign currencies.
 Nonoperating income (expense)--net included a $12.1 million charge related to the early redemption of $184 million of 9.75 percent U.S. Dollar debt recorded in the first quarter.
 The effective income tax rate was 33.8 percent for 1992, the same ascthe 1991 annual rate. U.S. OPERATING RESULTS
 U.S. sales grew 5 percent for the six months and 4 percent for the quarter. Sales and transaction counts were positively affected by our value program; by favorable weather conditions; and by marketing and promotional programs, such as Batman, the Extra Value Meal NBA Trading Card program and value-priced promotional products. Gains from these efforts were partially offset by the economy and competition.
 U.S. revenues declined 1 percent in both periods primarily as a result of the sale of certain Company-operated restaurant businesses to franchisees. Licensing these restaurants improves profits for the Company and the entire System, but reduces consolidated revenues for the Company.
 U.S. operating income increased 3 percent for the six months; for the quarter, operating income was flat due to a 70 percent reduction in Other operating (income) expense--net. Stronger sales and operating margins benefitted both periods and were partially offset by lower gains on sales of restaurant businesses. Results for the 1991 second quarter included a gain on the sale of real estate by an affiliate.
 OPERATING RESULTS OUTSIDE OF THE U.S.
 Sales outside of the U.S. rose 15 percent for the six months and 17 percent for the quarter due to increased market penetration and higher sales at existing restaurants. Many markets -- specifically Australia, France, Germany, Hong Kong, Netherlands, Philippines, Singapore, Spain and Switzerland -- achieved excellent sales gains. Recessions continued to impact results in Canada and England, while consumer spending slowed in Japan, and events in Yugoslavia, Taiwan and France tempered the results.
 Revenues outside of the U.S. increased 13 percent for the six months, and 15 percent for the quarter which benefitted from stronger foreign currencies.
 Operating income outside of the U.S. grew 21 percent for the six months and 22 percent for the quarter. Contributing to the 1992 second quarter were stronger foreign currencies and settlement of a sales tax case in Brazil, recorded in Other operating (income) expense--net, offset by lower results from affiliates.
 If exchange rates had remained at 1991 levels, operating results would have been as follows:
 Six Months Ended June 30
 (Dollars in millions) Reported Adjusted
 $ Pct $ Pct
 Systemwide sales $10,302.5 9 $10,282.7 8
 Operating income $ 871.2 10 $ 872.2 10
 Net income $ 441.5 10 $ 443.8 11
 Second Quarter Ended June 30
 Reported Adjusted
 $ Pct $ Pct
 Systemwide sales $ 5,386.9 9 $ 5,319.7 7
 Operating income $ 478.0 8 $ 472.7 7
 Net income $ 254.1 10 $ 253.2 9
 McDONALD'S CORPORATION
 Financial Information
 (In millions of dollars)
 Six Months Ended June 30
 Increase(Decrease)
 1992 1991 $ Pct
 SYSTEMWIDE SALES
 U.S.
 Operated by franchisees $ 5,056.1 $ 4,728.4 327.7 7
 Operated by the Company 1,148.5 1,206.7 (58.2) (5)
 Operated by affiliates 128.7 109.7 19.0 17
 Subtotal 6,333.3 6,044.8 288.5 5
 Outside of the U.S.
 Operated by franchisees 1,747.4 1,420.3 327.1 23
 Operated by the Company 1,292.2 1,177.7 114.5 10
 Operated by affiliates 929.6 841.6 88.0 10
 Subtotal 3,969.2 3,439.6 529.6 15
 Total $10,302.5 $ 9,484.4 818.1 9
 By Type
 Operated by franchisees $ 6,803.5 $ 6,148.7 654.8 11
 Operated by the Company 2,440.7 2,384.4 56.3 2
 Operated by affiliates 1,058.3 951.3 107.0 11
 Total $10,302.5 $ 9,484.4 818.1 9
 TOTAL REVENUES
 U.S. $ 1,815.7 $ 1,827.8 (12.1) (1)
 Outside of the U.S. 1,576.7 1,400.8 175.9 13
 Total $ 3,392.4 $ 3,228.6 163.8 5
 OPERATING INCOME
 U.S. $ 505.8 $ 490.2 15.6 3
 Outside of the U.S. 365.4 303.1 62.3 21
 Total $ 871.2 $ 793.3 77.9 10
 PERCENT CONTRIBUTION TO
 CONSOLIDATED MARGINS Company-operated Franchised
 1992 1991 1992 1991
 U.S. 47 49 70 74
 Outside of the U.S. 53 51 30 26
 Total 100 100 100 100
 McDONALD'S CORPORATION
 Restaurant Information
 At June 30
 Increase(Decrease)
 1992 1991 No. Pct
 U.S.
 Operated by franchisees 7,224 6,970 254 4
 Operated by the Company 1,412 1,505 (93) (6)
 Operated by affiliates 178 160 18 11
 Total 8,814 8,635 179 2
 Outside of the U.S.
 Operated by franchisees 1,660 1,409 251 18
 Operated by the Company 1,106 1,040 66 6
 Operated by affiliates 1,031 906 125 14
 Total 3,797 3,355 442 13
 Total 12,611 11,990 621 5
 By Type
 Operated by franchisees 8,884 8,379 505 6
 Operated by the Company 2,518 2,545 (27) (1)
 Operated by affiliates 1,209 1,066 143 13
 Total 12,611 11,990 621 5
 Restaurants in Major Markets Outside of the U.S.
 Japan 892 804
 Canada 644 631
 England 406 371
 Germany 395 356
 Australia 310 275
 France 214 164
 Other 936 754
 Total 3,797 3,355
 McDONALD'S CORPORATION
 Condensed Consolidated Statement of Income


(Dollars and shares in millions, except per common share amounts)
 Six Months Ended June 30
 Increase(Decrease)
 1992 1991 $ Pct
 SYSTEMWIDE SALES $10,302.5 $ 9,484.4 818.1 9
 Revenues
 Sales by Company-
 operated restaurants $ 2,440.7 $ 2,384.4 56.3 2
 Revenues from
 franchised restaurants 951.7 844.2 107.5 13
 TOTAL REVENUES 3,392.4 3,228.6 163.8 5
 Operating costs and expenses
 Company-operated restaurants 1,990.1 1,979.8 10.3 1
 Franchised restaurants 168.1 147.2 20.9 14
 General, administrative
 and selling expenses 403.9 382.7 21.2 6
 Other operating (income)
 expense--net (40.9) (74.4) 33.5 (45)
 Total operating
 costs and expenses 2,521.2 2,435.3 85.9 4
 OPERATING INCOME 871.2 793.3 77.9 10
 Interest expense 190.2 198.3 (8.1) (4)
 Nonoperating income
 (expense)--net (14.1) 11.9 (26.0) (218)
 Income before provision
 for income taxes 666.9 606.9 60.0 10
 Provision for income taxes 225.4 206.4 19.0 9
 NET INCOME $ 441.5 $ 400.5 41.0 10
 NET INCOME PER COMMON
 SHARE (A) $ 1.20 $ 1.09 .11 10
 Weighted average common
 shares outstanding 362.6 358.4
 (A) -Computed using net income reduced by preferred stock dividends of $6.8 million (net of tax) and $8.7 million for 1992 and 1991.
 McDONALD'S CORPORATION
 Condensed Consolidated Statement of Income


(Dollars and shares in millions, except per common share amounts)
 Second Quarter Ended June 30
 Increase(Decrease)
 1992 1991 $ Pct
 SYSTEMWIDE SALES $ 5,386.9 $ 4,956.5 430.4 9
 Revenues
 Sales by Company-
 operated restaurants $ 1,273.6 $ 1,227.7 45.9 4
 Revenues from
 franchised restaurants 500.5 443.1 57.4 13
 TOTAL REVENUES 1,774.1 1,670.8 103.3 6
 Operating costs and expenses
 Company-operated restaurants 1,031.6 1,006.7 24.9 2
 Franchised restaurants 85.1 74.4 10.7 14
 General, administrative
 and selling expenses 209.4 198.4 11.0 6
 Other operating (income)
 expense--net (30.0) (49.8) 19.8 (40)
 Total operating
 costs and expenses 1,296.1 1,229.7 66.4 5
 OPERATING INCOME 478.0 441.1 36.9 8
 Interest expense 93.0 96.1 (3.1) (3)
 Nonoperating income
 (expense)--net (1.2) 6.5 (7.7) (118)
 Income before provision
 for income taxes 383.8 351.5 32.3 9
 Provision for income taxes 129.7 119.5 10.2 9
 NET INCOME $ 254.1 $ 232.0 22.1 10
 NET INCOME PER COMMON
 SHARE (A) $ .69 $ .63 .06 10
 Weighted average common
 shares outstanding 363.0 357.6
 (A) -Computed using net income reduced by preferred stock dividends of $3.4 million (net of tax) and $5.2 million for 1992 and 1991, respectively.
 -0- 7/23/92
 /CONTACT: Sharon Vuinovich, investors, 708-575-3395, or Chuck Ebeling, media, 708-575-6150, both of McDonald's Corporation/
 (MCD) CO: McDonald's Corporation ST: Illinois IN: LEI SU: ERN


BM -- CL019 -- 2647 07/23/92 15:03 EDT
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