McDonald's Corp. Reports Operating Results (10-Q)

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Nov 01, 2012
McDonald's Corp. (MCD, Financial) filed Quarterly Report for the period ended 2012-09-30.

Mcdonald's Corporation has a market cap of $87.45 billion; its shares were traded at around $86.83 with a P/E ratio of 16.3 and P/S ratio of 3.2. The dividend yield of Mcdonald's Corporation stocks is 3.2%. Mcdonald's Corporation had an annual average earning growth of 14.5% over the past 10 years. GuruFocus rated Mcdonald's Corporation the business predictability rank of 5-star.

Highlight of Business Operations:

The business is managed as distinct geographic segments. Significant reportable segments include the United States (U.S.), Europe, and Asia/Pacific, Middle East and Africa (APMEA). In addition, throughout this report we present “Other Countries & Corporate” that includes operations in Canada and Latin America, as well as Corporate activities. For the nine months ended September 30, 2012, the U.S., Europe and APMEA segments accounted for 32%, 39% and 23% of total revenues, respectively.

Diluted earnings per share were $1.43 for the quarter and $3.98 for the nine months, decreased 1% (increased 4% in constant currencies) and up 1% (5% in constant currencies), respectively. Foreign currency translation negatively impacted diluted earnings per share by $0.08 for the quarter and $0.16 for the nine months.

For the nine months, net income decreased 1% (increased 3% in constant currencies) to $4,068.7 million and diluted earnings per share increased 1% (5% in constant currencies) to $3.98. Foreign currency translation had a negative impact of $0.16 per share on diluted earnings per share.

Sales from developmental licensed restaurants or foreign affiliated markets where the Company earns a royalty based on a percent of sales were $4,032.1 million and $4,105.8 million for the quarters 2012 and 2011, respectively, and $11,586.1 million and $11,034.0 million for the nine months 2012 and 2011, respectively. The remaining balance of franchised sales is derived from conventional franchised restaurants where the Company earns rent and royalties based primarily on a percent of sales.

For the nine months, selling, general & administrative expenses as a percent of revenues increased to 8.9% for 2012 compared with 8.6% for 2011, and as a percent of Systemwide sales increased to 2.8% for 2012 compared with 2.7% for 2011.

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