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McDONALD'S REPORTS RECORD RESULTS

 OAK BROOK, Ill., April 22 /PRNewswire/ -- McDonald's Corporation (NYSE: MCD) today announced record results for the first quarter ended March 31, 1993:
 -- NET INCOME PER COMMON SHARE ROSE 12 PERCENT.
 -- NET INCOME GREW 16 PERCENT.
 -- RESTAURANTS IN OPERATION AT QUARTER-END REACHED 13,184.
 -- OPERATING INCOME INCREASED 5 PERCENT.
 -- SYSTEMWIDE SALES GREW 6 PERCENT.
 KEY HIGHLIGHTS First Quarters Ended March 31
 (Dollars in millions, except Increase
 per common share amounts) 1993 1992 Dollars Percent
 Systemwide sales $ 5,235.1 $ 4,915.6 319.5 6
 Total revenues $ 1,654.1 $ 1,618.3 35.8 2
 Operating income $ 411.4 $ 393.2 18.2 5
 Net income $ 218.3 $ 187.4 30.9 16
 Net income per common share $ .57 $ .51 .06 12


SUMMARY COMMENTARY
 McDonald's business continued to show improvement on a worldwide basis. The U.S. business benefited from the ongoing evolution of the value program nationally established in 1991, and a focus on customer satisfaction. The international business benefited from expansion and slightly higher sales at existing restaurants, but was hurt by weaker foreign currencies.
 The quarter's results, although good, would have been stronger but for factors such as the loss of one day since 1992 was a leap year, severe weather conditions worldwide and weaker foreign currencies. Upon analyzing the results, it is clear that our performance in 1993 will keep us on the track of achieving teens growth in earnings as measured over a five-year-period of time.
 Over the past two years, we have been successful in accelerating expansion while holding the line on capital spending. In February, we announced that openings will accelerate over the next several years, ranging from 700 to 900 restaurants per year. Nevertheless, we anticipate that cash from operations will again exceed capital expenditures in 1993. Accordingly, we intend to purchase up to $200 million of additional shares this year, over and above the $500 million previously announced.
 We have increased our expectations for new openings in both the U.S. and outside of the U.S. due in part to our success in lowering development costs and in identifying nontraditional locations. We are pleased with the progress of our joint test with Wal-Mart which includes converting snack bars in their stores to McDonald's retail food outlets. And we are engaged in the further expansion of this test.


CONSOLIDATED OPERATING RESULTS
 Systemwide sales represent sales by Company-operated, franchised and affiliated restaurants. The increase was due to new restaurant expansion and higher sales at existing restaurants worldwide, offset by weaker foreign currencies, one less day in the quarter since 1992 was a leap year and severe weather conditions.
 A total of 91 restaurants were added in 1993 (50 in 1992), including 26 in the U.S. (8 in 1992) and 65 outside of the U.S. (42 in 1992). An additional 209 restaurants were under construction at quarter-end (167 in 1992), including 90 in the U.S. (42 in 1992) and 119 outside of the U.S. (125 in 1992).
 The rate of increase in revenues continued to register below the increase for Systemwide sales because of weaker foreign currencies and the franchising of certain Company-operated restaurant businesses in the U.S.
 Franchised restaurant margins comprised about two-thirds of the combined operating margins. Consolidated Company-operated margins were impacted by weaker foreign currencies, and declined from 17.9 percent of sales in 1992 to 17.4 percent in 1993. As a percent of sales, food and paper costs increased, payroll costs were flat, and occupancy and other operating costs declined. Consolidated franchised margins improved to 81.9 percent of applicable revenues for 1993, compared to 81.6 percent one year ago.
 The increase in general, administrative and selling expenses was due to higher employee costs associated with expansion and to support key priorities. As a perspective, general, administrative and selling expenses were 3.9 percent of Systemwide sales in 1992.
 Other operating items are transactions related to franchising and the food business such as gains on sales of restaurant businesses, equity in earnings of unconsolidated affiliates and other items.
 First Quarters Ended March 31
 (In millions of dollars) 1993 1992
 Gains on sales of
 restaurant businesses $(10.1) $ (6.9)
 Equity in earnings of
 unconsolidated affiliates (6.7) (8.9)
 Other (2.0) 4.9
 Other operating (income)
 expense--net $(18.8) $(10.9)
 The increase in consolidated operating income reflected better results from franchised restaurants and higher other operating income; and partially offset by higher general, administrative and selling expenses, lower Company-operated restaurant margins and weaker foreign currencies.
 The decrease in interest expense was primarily due to lower debt balances, weaker foreign currencies and lower interest rates, offset by lower capitalized interest.
 The improvement in nonoperating items was due to $12.1 million in charges related to debt redemptions in 1992.
 The effective income tax rate increased to 34.5 percent for 1993, compared to 33.8 percent for the years 1992 and 1991, because of lower foreign tax benefits.


U.S. OPERATING RESULTS
 U.S. sales grew 6 percent, repeating strong performance for another quarter. Sales and transaction counts were positively driven by the emphasis on value and customer satisfaction in the form of "2 for $2" value offers, Burger of the Month program, and the NBA Fantasy Pack Trading Card promotion; and negatively impacted by the loss of one day in the quarter and severe weather conditions.
 U.S. revenues increased 2 percent primarily as a result of strong sales, partially offset by the franchising of certain Company-operated restaurant businesses.
 U.S. operating income increased 1 percent as higher franchised margins and lower losses on property dispositions were partially offset by higher general, administrative and selling expenses and lower Company-operated margins.


OPERATING RESULTS OUTSIDE OF THE U.S.
 Sales outside of the U.S. rose 7 percent due to expansion and slightly higher sales at existing restaurants, but were hurt by weaker foreign currencies and by the loss of one day in the quarter. Many markets -- including Australia, Austria, Denmark, France, Germany, Hong Kong, Malaysia, Netherlands, New Zealand, Singapore, Spain, Switzerland, Taiwan and Thailand -- achieved excellent sales gains.
 On a segment basis, Pacific sales were strong with the exception of our affiliate in Japan which was severely affected by a weak economy. Although many European economies remained weak, many markets performed well because of the emphasis on value, including England which improved in sales trends. Latin American economies have been weakening, but our business there was stable. And Canada remained sluggish.
 Revenues outside of the U.S. increased 2 percent due to weaker foreign currencies especially in England and Canada; the increase would have been 10 percent without the impact of currency.
 Operating income outside of the U.S. grew 10 percent reflecting expansion, partially offset by weaker foreign currencies. In particular, exposure to the British Pound Sterling severely impacted Company-operated margins.


IMPACT OF FOREIGN CURRENCIES
 If exchange rates had remained at 1992 levels, consolidated operating results for 1993 would have been as follows:
 First Quarter Ended March 31, 1993
 (Dollars in millions) Reported Adjusted
 $ Pct $ Pct
 Systemwide sales $ 5,235.1 6 $ 5,315.1 8
 Operating income $ 411.4 5 $ 419.9 7
 Net income $ 218.3 16 $ 221.2 18
 McDONALD'S CORPORATION
 FINANCIAL INFORMATION
 First Quarters Ended March 31
 Increase(Decrease)
 (Dollars in millions) 1993 1992 Dollars Percent
 SYSTEMWIDE SALES
 U.S.
 Operated by franchisees $ 2,545.6 $ 2,375.3 170.3 7
 Operated by the Company 543.0 547.6 (4.6) (1)
 Operated by affiliates 69.8 59.1 10.7 18
 3,158.4 2,982.0 176.4 6
 Outside of the U.S.
 Operated by franchisees 954.6 838.3 116.3 14
 Operated by the Company 610.3 619.5 (9.2) (1)
 Operated by affiliates 511.8 475.8 36.0 8
 2,076.7 1,933.6 143.1 7
 $ 5,235.1 $ 4,915.6 319.5 6
 By Type
 Operated by franchisees $ 3,500.2 $ 3,213.6 286.6 9
 Operated by the Company 1,153.3 1,167.1 (13.8) (1)
 Operated by affiliates 581.6 534.9 46.7 9
 5,235.1 $ 4,915.6 319.5 6
 TOTAL REVENUES
 U.S. $ 881.0 $ 862.1 18.9 2
 Outside of the U.S. 773.1 756.2 16.9 2
 $ 1,654.1 $ 1,618.3 35.8 2
 OPERATING INCOME
 U.S. $ 227.8 $ 226.1 1.7 1
 Outside of the U.S. 183.6 167.1 16.5 10
 $ 411.4 $ 393.2 18.2 5
 Percent Contribution to Consolidated Margins
 Company-operated Franchised
 1993 1992 1993 1992
 U.S. 45 46 68 70
 Outside of the U.S. 55 54 32 30
 100 100 100 100
 McDONALD'S CORPORATION
 RESTAURANT INFORMATION
 At March 31
 Increase(Decrease)
 1993 1992 Number Percent
 U.S.
 Operated by franchisees 7,406 7,164 242 3
 Operated by the Company 1,381 1,428 (47) (3)
 Operated by affiliates 198 180 18 10
 8,985 8,772 213 2
 Outside of the U.S.
 Operated by franchisees 1,901 1,603 298 19
 Operated by the Company 1,155 1,095 60 5
 Operated by affiliates 1,143 998 145 15
 4,199 3,696 503 14
 13,184 12,468 716 6
 By Type
 Operated by franchisees 9,307 8,767 540 6
 Operated by the Company 2,536 2,523 13 1
 Operated by affiliates 1,341 1,178 163 14
 13,184 12,468 716 6
 Restaurants in Markets Outside of the U.S.
 Japan 970 873
 Canada 659 643
 Germany 440 392
 England 433 403
 Australia 341 304
 France 247 197
 Brazil 110 85
 Other 999 799
 4,199 3,696
 McDONALD'S CORPORATION
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (Dollars and shares in First Quarters Ended March 31
 millions, except per Increase(Decrease)
 common share amounts) 1993 1992 Dollars Percent
 SYSTEMWIDE SALES $ 5,235.1 $ 4,915.6 319.5 6
 Revenues
 Sales by Company-
 operated restaurants $ 1,153.3 $ 1,167.1 (13.8) (1)
 Revenues from
 franchised restaurants 500.8 451.2 49.6 11
 TOTAL REVENUES 1,654.1 1,618.3 35.8 2
 ______________________________________________________________
 Operating costs and expenses
 Company-operated restaurants 952.9 958.5 (5.6) (1)
 Franchised restaurants-- 90.8 83.0 7.8 9
 occupancy costs
 General, administrative
 and selling expenses 217.8 194.5 23.3 12
 Other operating (income)
 expense--net (18.8) (10.9) (7.9) 72
 Total operating
 costs and expenses 1,242.7 1,225.1 17.6 1
 OPERATING INCOME 411.4 393.2 18.2 5
 Interest expense 79.3 97.2 (17.9) (18)
 Nonoperating income
 (expense)--net 1.2 (12.9) 14.1 NM
 Income before provision
 for income taxes 333.3 283.1 50.2 18
 Provision for income taxes 115.0 95.7 19.3 20
 NET INCOME $ 218.3 $ 187.4 30.9 16
 NET INCOME PER
 COMMON SHARE(A) $ .57 $ .51 .06 12
 Weighted average common
 shares outstanding 361.5 359.2
 (A) -- Computed using net income reduced by preferred stock dividends (net of tax) of $11.8 and $3.4 million for 1993 and 1992, respectively.
 NM = Not Meaningful
 -0- 4/22/93
 /CONTACT: Chuck Ebeling, Media, 708-575-6150, Sharon Vuinovich, Investors, 708-575-3395; both of McDonald's Corporation/
 (MCD)


CO: McDonald's Corporation ST: Illinois IN: LEI SU: ERN

BM -- CL024 -- 9545 04/22/93 14:05 EDT
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