McDonalds has just enjoyed its 58th consecutive quarter of same store sales growth.
With Starbucks (SBUX) set to report dismal results this week, perhaps execs at the troubled coffee chain can finally admit they missed this one? By the way, going to an 8oz. $1 coffee is not the answer. If you claim to be upscale and want people to think of you that way, going low-scale in price is not the answer. Better service and larger less merchandise crowded locations are.
Back to Mickey-Dees:
— Global comparable sales increased 6.7%, on top of a 6.3% increase in
2006
— Growth in consolidated Company-operated and franchised restaurant
margins for the eighth consecutive quarter
— Consolidated operating income increased 22% (15% in constant
currencies)
— Earnings per share were $1.06, including $0.33 per share of income tax
benefits. Currency translation benefited earnings by $0.04 per share
— The Company repurchased over $1.3 billion of its stock
Full year 2007 highlights included:
— Revenues reached a record high of $22.8 billion on global comparable
sales of 6.8%
— Company-operated and franchised margins rose by 110 basis points and 80
basis points, respectively
— The Company returned $5.7 billion to shareholders through shares
repurchased and dividends paid
CEO Jim Skinner announced a change to the dividend structure. “Separately, given the substantial increase to the Company’s dividend over the last several years, McDonald’s Board of Directors has decided that beginning in 2008, dividends declared will be paid on a quarterly basis. On January 24, 2008, McDonald’s Board of Directors declared a dividend for the first quarter of 2008 of $0.375 per share payable on March 17, 2008 to shareholders of record on March 3, 2008. The Board of Directors will continue to review the Company’s dividend rate annually each fall.”
McDonalds also plans to return $17 billion to shareholders from 2007 to 2009 through both dividends and share repurchases.
Disclosure (“none” means no position): Long McDonalds, None
