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McDONALD'S REPORTS RECORD RESULTS

 OAK BROOK, Ill., July 22 /PRNewswire/ -- McDonald's Corporation (NYSE: MCD) today announced record results for the six months and second quarter ended June 30, 1993:
 -- NET INCOME PER COMMON SHARE ROSE 13 PERCENT FOR BOTH PERIODS.
 -- NET INCOME GREW 15 PERCENT FOR THE SIX MONTHS AND 14 PERCENT FOR
 THE QUARTER.
 -- RESTAURANTS IN OPERATION REACHED 13,389.
 -- SYSTEMWIDE SALES GREW 9 PERCENT FOR THE SIX MONTHS AND 11 PERCENT
 FOR THE QUARTER.
 -- OPERATING INCOME INCREASED 7 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) 1993 1992 Dollars Percent
 -Systemwide sales $11,194.0 $10,302.5 891.5 9
 -Total revenues $ 3,531.9 $ 3,392.4 139.5 4
 -Operating income $ 929.2 $ 871.2 58.0 7
 -Net income $ 507.1 $ 441.5 65.6 15
 -Net income per common share $ 1.35 $ 1.20 .15 13
 Second Quarter Ended June 30
 Increase
 1993 1992 Dollars Percent
 -Systemwide sales $ 5,958.9 $ 5,386.9 572.0 11
 -Total revenues $ 1,877.8 $ 1,774.1 103.7 6
 -Operating income $ 517.8 $ 478.0 39.8 8
 -Net income $ 288.8 $ 254.1 34.7 14
 -Net income per common share $ .78 $ .69 .09 13


SUMMARY COMMENTARY
 McDonald's business continued to show growth on a worldwide basis. The U.S. business benefited from the ongoing evolution of the value program established nationally in 1991, our focus on customer satisfaction and expansion. The international business benefited from expansion and higher sales at existing restaurants, but was hurt by weaker foreign currencies.
 We are pleased with our sales performance on a worldwide basis, which reflected excellent momentum in the second quarter. The six- month results would have been even stronger except for factors such as weaker foreign currencies throughout the six months, one less day in 1993 since 1992 was a leap year, and severe weather conditions worldwide in the first quarter. 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.


CONSOLIDATED OPERATING RESULTS
 Systemwide sales represent sales by Company-operated, franchised and affiliated restaurants. The increases were due to new restaurant expansion and higher sales at existing restaurants worldwide, offset by weaker foreign currencies, one less day in 1993 since 1992 was a leap year, and severe weather conditions worldwide in the first quarter.
 A total of 296 restaurants were added in the first half of 1993 (193 in 1992), including 119 in the U.S. (50 in 1992) and 177 outside of the U.S. (143 in 1992). An additional 250 restaurants were under construction at quarter-end (201 in 1992), including 80 in the U.S. (52 in 1992) and 170 outside of the U.S. (149 in 1992).
 The rates of increases in revenues continued to register below the increases for Systemwide sales because of weaker foreign currencies and the franchising of certain Company-operated restaurant businesses in the U.S. in 1992.
 Franchised restaurant margins comprised about two-thirds of the combined operating margins. Consolidated franchised margins improved to 82.8 percent of applicable revenues for the first six months of 1993, compared to 82.3 percent one year ago, largely due to sales growth. For the second quarters, margins were 83.6 percent in 1993, and 83.0 percent in 1992. Consolidated Company-operated margins were 18.6 percent of sales for the first six months of 1993, compared to 18.5 percent in 1992. For the second quarters, margins were 19.7 percent in 1993, and 19.0 percent in 1992. For both periods, as a percent of sales, food and paper costs increased; payroll, occupancy and other operating costs declined.
 The increases in general, administrative and selling expenses were due to higher employee costs associated with expansion and key priorities.
 Other operating transactions relate to franchising and the food 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
 (In millions of dollars) 1993 1992 1993 1992
 Gains on sales of
 restaurant businesses $(24.4) $(21.3) $(14.3) $(14.4)
 Equity in earnings of
 unconsolidated affiliates (12.3) (9.0) (5.6) (.1)
 Other 2.3 (10.6) 4.3 (15.5)
 Other operating (income)
 expense--net $(34.4) $(40.9) $(15.6) $(30.0)
 The increases in consolidated operating income reflected better results from franchised restaurants, partially offset by higher general, administrative and selling expenses, lower other operating income and weaker foreign currencies.
 The decreases in interest expense were due to lower debt balances, weaker foreign currencies and lower interest rates, partially offset by lower capitalized interest.
 Nonoperating items for the six months were affected by $12.1 million in charges related to debt redemptions in the first quarter of 1992.
 The effective income tax rate increased to 34.4 percent for 1993, compared to 33.8 percent for the years 1992 and 1991, because of lower foreign tax benefits. The proposed U.S. tax legislation, if enacted in its present form, would result in approximately a $20 million increase in the full year 1993 income tax provision, of which approximately $14 million would be a one-time, noncash revaluation of deferred tax liabilities.
 Net income and net income per common share increased 15 and 13 percent for the six months, respectively. The 2 percentage point spread reflected the dilutive impact of the preferred stock issued last year. This spread will continue to narrow as the year progresses as the full impact of share repurchase is realized; the $700 million common stock repurchase program has been nearly completed at this time.


U.S. OPERATING RESULTS
 U.S. sales grew 7 percent for the six months and 8 percent for the quarter due to higher sales at existing restaurants and expansion. Sales and transaction counts were positively driven by the emphasis on value and customer satisfaction in the form of Extra-Value Meals, Happy Meals, "2 for $2" offers and the Burger of the Month program; as well as the NBA Fantasy Pack Trading Card, Happy Birthday Big Mac and Jurassic Park promotions. The loss of one day and severe weather conditions in the first quarter negatively impacted the results.
 U.S. revenues increased 4 percent for the six months and 5 percent for the quarter, primarily as a result of strong sales, partially offset by the franchising of certain Company-operated restaurant businesses in 1992.
 U.S. operating income increased 3 percent for the six months and 4 percent for the quarter, as higher franchised margins were partially offset by higher general, administrative and selling expenses.


OPERATING RESULTS OUTSIDE OF THE U.S.
 Sales outside of the U.S. rose 11 percent for the six months and 15 percent for the quarter due to expansion and higher sales at existing restaurants, but were hurt by weaker foreign currencies, the loss of one day and severe weather conditions in the first quarter. If exchange rates has remained at 1992 levels, sales outside of the U.S. would have increased 14 and 16 percent for the six months and quarter, respectively. Many markets -- including Argentina, Australia, Austria, Brazil, Denmark, England, France, Germany, Hong Kong, Italy, Netherlands, New Zealand, Puerto Rico, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand and Turkey -- delivered excellent sales.
 Pacific sales were strong with the exception of our affiliate in Japan which continues to be affected by a weak economy. Although many European economies showed weakness, many McDonald's markets performed well because of an emphasis on value, including England where sales growth over the past several quarters has been noteworthy. Latin American economies have been weak, but our business there has been improving. Canada has shown improvement in the second quarter, in spite of a persistently weak economy.
 Revenues outside of the U.S. increased just 4 percent for the six months and 7 percent for the quarter, constrained by weaker foreign currencies especially in England, Canada and Australia. If exchange rates had remained at 1992 levels, revenues outside of the U.S. would have increased 12 and 14 percent for the six months and quarter, respectively.
 Operating income outside of the U.S. grew 12 percent for the six months and 15 percent for the quarter reflecting expansion and higher franchised margins, partially offset by weaker foreign currencies. The favorable settlement of a sales tax case in Brazil was recorded in the second quarter of 1992. If exchange rates had remained at 1992 levels, operating income outside of the U.S. would have increased 18 and 20 percent for the six months and quarter, respectively.


IMPACT OF FOREIGN CURRENCIES ON CONSOLIDATED RESULTS
 Weaker foreign currencies continued to negatively impact consolidated operating results. In particular, the British Pound Sterling and Australian and Canadian Dollars were responsible for this impact. If exchange rates had remained at 1992 levels, the results would have been as follows:
 Six Months Ended June 30, 1993
 (Dollars in millions) Reported Adjusted
 Dollars Percent Dollars Percent
 Systemwide sales $11,194.0 9 $11,309.9 10
 Operating income $ 929.2 7 $ 948.1 9
 Net income $ 507.1 15 $ 515.5 17
 Second Quarter Ended June 30, 1993
 Reported Adjusted
 Dollars Percent Dollars Percent
 Systemwide sales $ 5,958.9 11 $ 5,994.8 11
 Operating income $ 517.8 8 $ 528.2 11
 Net income $ 288.8 14 $ 294.3 16
 McDONALD'S CORPORATION
 FINANCIAL INFORMATION
 Six Months Ended June 30
 Increase(Decrease)
 (Dollars in millions) 1993 1992 Dollars Percent
 SYSTEMWIDE SALES
 U.S.
 Operated by franchisees $ 5,471.5 $ 5,056.1 415.4 8
 Operated by the Company 1,160.4 1,148.5 11.9 1
 Operated by affiliates 152.0 128.7 23.3 18
 6,783.9 6,333.3 450.6 7
 Outside of the U.S.
 Operated by franchisees 2,030.9 1,747.4 283.5 16
 Operated by the Company 1,300.5 1,292.2 8.3 1
 Operated by affiliates 1,078.7 929.6 149.1 16
 4,410.1 3,969.2 440.9 11
 $11,194.0 $10,302.5 891.5 9
 By Type
 Operated by franchisees $ 7,502.4 $ 6,803.5 698.9 10
 Operated by the Company 2,460.9 2,440.7 20.2 1
 Operated by affiliates 1,230.7 1,058.3 172.4 16
 $11,194.0 $10,302.5 891.5 9
 TOTAL REVENUES
 U.S. $ 1,884.6 $ 1,815.7 68.9 4
 Outside of the U.S. 1,647.3 1,576.7 70.6 4
 $ 3,531.9 $ 3,392.4 139.5 4
 OPERATING INCOME
 U.S. $ 518.5 $ 505.8 12.7 3
 Outside of the U.S. 410.7 365.4 45.3 12
 $ 929.2 $ 871.2 58.0 7
 Percent Contribution to Consolidated Margins
 Company-operated Franchised
 1993 1992 1993 1992
 U.S. 45 47 68 70
 Outside of the U.S. 55 53 32 30
 100 100 100 100
 McDONALD'S CORPORATION
 RESTAURANT INFORMATION
 At June 30
 Increase(Decrease)
 1993 1992 Number Percent
 U.S.
 Operated by franchisees 7,476 7,224 252 3
 Operated by the Company 1,401 1,412 (11) (1)
 Operated by affiliates 201 178 23 13
 9,078 8,814 264 3
 Outside of the U.S.
 Operated by franchisees 1,975 1,660 315 19
 Operated by the Company 1,175 1,106 69 6
 Operated by affiliates 1,161 1,031 130 13
 4,311 3,797 514 14
 13,389 12,611 778 6
 By Type
 Operated by franchisees 9,451 8,884 567 6
 Operated by the Company 2,576 2,518 58 2
 Operated by affiliates 1,362 1,209 153 13
 13,389 12,611 778 6
 Restaurants in Markets Outside of the U.S.
 Japan 995 892
 Canada 669 644
 Germany 448 395
 England 442 406
 Australia 352 310
 France 261 214
 Brazil 113 94
 Other 1,031 842
 4,311 3,797
 McDONALD'S CORPORATION
 CONDENSED CONSOLIDATED STATEMENT OF INCOME
 (Dollars and shares in Six Months Ended June 30
 millions, except per Increase(Decrease)
 common share amounts) 1993 1992 Dollars Percent
 SYSTEMWIDE SALES $11,194.0 $10,302.5 891.5 9
 Revenues
 Sales by Company-
 operated restaurants $ 2,460.9 $ 2,440.7 20.2 1
 Revenues from
 franchised restaurants 1,071.0 951.7 119.3 13
 TOTAL REVENUES 3,531.9 3,392.4 139.5 4
 Operating costs and expenses
 Company-operated
 restaurants 2,002.4 1,990.1 12.3 1
 Franchised restaurants 184.4 168.1 16.3 10
 General, administrative
 and selling expenses 450.3 403.9 46.4 11
 Other operating (income)
 expense--net (34.4) (40.9) 6.5 (16)
 Total operating
 costs and expenses 2,602.7 2,521.2 81.5 3
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Date:Jul 22, 1993
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