What was the primary driver of revenue growth in the third quarter of 2011?

Revenue growth was primarily driven by a global comparable sales increase of 5.0%, coupled with expansion through new restaurant openings. Europe and APMEA segments showed particularly strong performance in constant currencies.

How did foreign currency fluctuations impact McDonald's financial results?

Foreign currency translation had a positive impact, increasing diluted earnings per share by $0.08 for the quarter and $0.19 for the nine months. This was largely due to a stronger Euro and Australian Dollar.

What is McDonald's strategy for returning capital to shareholders?

McDonald's is actively returning capital through share repurchases and dividends. In the nine months ended September 30, 2011, the company repurchased $3.0 billion of stock and paid $1.8 billion in dividends. The quarterly cash dividend was also increased by 15%.

What are the company's expectations for commodity costs?

For the full year 2011, McDonald's expected the total basket of goods cost to increase by 4.5-5% in the U.S. and Europe.

MCD 10-Q Quarterly Report Q3 FY2011 — Revenue, Net Income, EPS

Summary

McDonald's Corporation reported strong financial results for the quarter and nine months ended September 30, 2011. Total revenues increased by 14% and 13% respectively, driven by a robust 5.0% and 4.9% global comparable sales growth. Operating income saw a significant increase of 14% in both periods, with diluted earnings per share growing by 12% and 15% respectively. The company continued its commitment to returning value to shareholders through share repurchases and a 15% increase in its quarterly cash dividend. Geographically, Europe and APMEA (Asia/Pacific, Middle East, and Africa) showed particularly strong revenue growth in constant currencies, largely attributable to successful comparable sales increases and ongoing restaurant modernization efforts. The company also provided an outlook for the remainder of the year, anticipating continued Systemwide sales growth from new restaurant openings and reinvestment in existing locations. Despite a challenging global economy, McDonald's demonstrated resilience and a capacity to drive growth through its strategic focus on customer experience, menu optimization, and value.

Financial Highlights

47 data points

Beta

Revenue

$7.17B

Net Income

$1.51B

0.2% Net Margin

EPS (Diluted)

$1.45

Total Assets

$32.28B

Cash & Equivalents

$2.39B

Free Cash Flow

$1.48B

Financial Statements

Beta

Revenue	$7.17B
SG&A Expenses	$580.90M
Operating Expenses	$4.77B
Operating Income	$2.39B
Interest Expense	$124.00M
Net Income	$1.51B
EPS (Basic)	$1.47
EPS (Diluted)	$1.45
Shares Outstanding (Basic)	1.03B
Shares Outstanding (Diluted)	1.04B

Key Highlights

1Global comparable sales increased 5.0% for the quarter and 4.9% for the nine months ended September 30, 2011.
2Consolidated operating income increased 14% (8% in constant currencies) for the quarter and nine months.
3Diluted earnings per share (EPS) were $1.45 for the quarter and $3.94 for the nine months, up 12% and 15% respectively.
4The quarterly cash dividend increased 15% to $0.70 per share, effective for the fourth quarter of 2011.
5For the nine months, the company repurchased 38.1 million shares for $3.0 billion and paid total dividends of $1.8 billion.
6Company-operated restaurant margins showed a 9% increase in dollar terms for both the quarter and nine months, despite rising commodity costs.
7Revenue growth was strong across all segments, with Europe and APMEA showing particularly high growth rates in constant currencies.

MCDONALDS CORP Quarterly Report for Q3 Ended Sep 30, 2011

Summary

Financial Highlights

Key Highlights

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