As I read the McDonalds (MCD) earnings call transcript, it stood out like a Yankee fan at Fenway.
Here are the results from CEO James Skinner:
Global comparable sales were up 4.3%, operating income increased 5% in constant currency and EPS reached $0.87, a 17% increase in constant currency.
Our sales momentum is continuing with April comparable sales trending at least as strong or better than the first quarter in every area of the world. McDonald’s is well positioned for continued growth. Our global system is aligned around the right strategies to manage in the current global economic environment and to seize future opportunities.
Outstanding results, second to none in the industry (and most of the S&P 500). So, how did the accomplish it?
We remain focused on our customers and restaurants through our plan to win. Everyday, customer relevance is job one at McDonald’s. We all know the state of today’s consumers. They’re scaling back and being more discerning about what they purchase. This means a strong value proposition is critical, from price to product, to experience.
McDonald’s offers strong value across our entire menu board. Our value menus around the world offer predictable, every day affordability and our core menu, including iconic products like the Quarter Pounder provide great value at the mid tier. This tiered pricing across the board value means we are in a position to grow our market share not only in the near term but in the long term as well.
The word “value” is mentioned 5 times in the two paragraphs and in every sentence that Skinner uses to explain what they offer customers. Is there any doubt the focus of the company?
I’d be willing to bet you could ask anyone in the entire organization what they offer customers and every person would have the word “value” in the answer. There is no doubt of that in my mind.
Disclosure (“none” means no position):Long MCD