MCDONALDS CORP Quarterly Report for Q1 Ended Mar 31, 2013

Summary

McDonald's Corporation's first quarter 2013 results showed a slight increase in total revenues, driven primarily by franchise revenue growth and new restaurant openings, despite a 1.0% decrease in global comparable sales. Net income remained stable year-over-year, and diluted earnings per share saw a modest 2% increase (3% in constant currencies). The company continues to navigate a challenging global economic environment, with economic headwinds pressuring performance across key markets. The company demonstrated financial discipline through dividend payments and share repurchases, indicating a commitment to returning value to shareholders. While overall revenue showed resilience, the decrease in comparable sales and company-operated margins highlights ongoing cost pressures and a cautious consumer environment. McDonald's remains focused on its "Plan to Win" strategy, emphasizing menu optimization, customer experience modernization, and broadening accessibility to drive long-term sustainable growth.

Key Highlights

• 1Total revenues increased by 1% to $6.6 billion, while constant currency revenues also grew by 1%.
• 2Global comparable sales decreased by 1.0%, with comparable guest counts down 1.9%, reflecting challenging economic conditions.
• 3Net income was flat at $1.27 billion, while diluted earnings per share increased by 2% to $1.26 (3% in constant currencies).
• 4The company returned $772.2 million to shareholders through dividends and repurchased approximately $354.3 million of its stock.
• 5Company-operated restaurant margins decreased by 8% (7% in constant currencies) due to negative comparable sales and cost pressures.
• 6The U.S. and Europe segments experienced slight revenue declines in constant currencies, while APMEA saw a modest increase.
• 7The company plans significant capital expenditures of approximately $3.2 billion for 2013, with over half dedicated to opening new restaurants.

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