Fastfood giant McDonald's has reported a 9% increase in revenues for the second quarter from US$5.10bn to $5.57bn, with global comparable sales up by 5.5%.

 

Net income for the quarter rose from $530.4m to $834.1m, while operating profits were 12% up from $1.02bn to $1.14bn.

 

For the six-month period, sales rose by 8% to $10.67bn, with net income reaching $1.46bn against $1.26bn in the corresponding period last year. Operating income for the six months rose by 7% to $2.06bn.

 

CEO Jim Skinner said: "Our focused and disciplined approach to executing McDonald's Plan to Win continues to yield outstanding results. During the second quarter, we generated strong sales and profitability increases across all segments of the business and achieved double-digit consolidated operating income growth."

 

In the US, McDonald's said its "customer-centric" business initiatives had driven revenue, margin and operating income growth. McDonald's US performance continues to reflect the "winning combination of compelling everyday value and innovative menu options", the company added.

 

In Europe, the company's three-tiered menu, offering premium, core and everyday low-price selections, as well as unique promotions linked with events such as the World Cup, had strengthened McDonald's connection with consumers, the company said. "Europe's 6.3% comparable sales increase was the strongest quarterly result in more than ten years," Skinner said. "We are pleased with Europe's improving profitability and remain intent on building upon these strong results."

 

Meanwhile, in Asia/Pacific, Middle East and Africa, McDonald's said its commitment to everyday value, balanced with premium products that appeal to local tastes, had contributed to the segment's strong performance for the quarter.

 

McDonald's said it expects in 2006 and 2007 combined to return at least $5bn to $6bn to shareholders through dividends and share repurchase. This quarter, the company reported it had repurchased about $800m of McDonald's stock, bringing year-to-date share repurchases to $1.8bn.

 

The company said it was also continuing to make progress in its move to convert 15 to 20 international markets to a developmental licensee structure. The conversion of three markets, namely Honduras, Nicaragua and Bulgaria, to development licences has been completed in 2006.

 

Earnings per share for the second quarter were $0.67, including $0.10 of income from the sale of Chipotle Mexican Grill shares and $0.02 of expense related to impairment and a one-time impact from a tax law change. Earnings per share in the second quarter of 2005 were $0.42, including $0.09 of tax expense due to the Homeland Investment Act.