Burger behemoth McDonald’s has reported a global results earnings per share up 15% to US$0.39 for its Q2 2002 ended 30 June, at the high end of previous guidance.
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Jack M. Greenberg, chairman and CEO, commented: “We expect 2002 annual EPS of US$1.47 to US$1.53, excluding US$142m of charges, in the Q1.
“Systemwide sales for the Q2 were US$10.4bn, up 2% in constant currencies. H1 systemwide sales were US$20.1bn, also up 2% in constant currencies. We expect constant currency Systemwide sales to increase in mid-single digits for the year.
“In Europe, sales increased 7% and operating income increased 8% in constant currencies for the quarter. Our largest markets in the segment all achieved positive comparable sales, with especially good results in France. Year-to-date, Europe’s sales increased 9% in constant currencies. We are excited about the opportunities in Europe and expect continued strong performance for the year.
“US sales increased 1% and US operating income increased 7% for the Q2. We are pleased with this increase in profits, which was driven by higher company-operated margins and effective cost controls. Year-to-date, US sales increased 2%. We are intent on increasing top-line sales performance through our restaurant operations improvement process, everyday value and drive-thru initiatives as well as our successful New Tastes Menu.
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By GlobalData“In our Asia/Pacific/Middle East/Africa (APMEA) segment, Australia delivered strong results. However, the segment continues to be hurt by weak economic conditions and in Japan, by consumer concerns about food safety. Constant currency sales in this segment declined 6% for the quarter and 4% year-to-date.”
Key highlights – consolidated
$m, except per common share data %
Increase/(Decrease)
As Constant
Quarters ended 30 June 2002 2001 Reported Currency*
Systemwide sales $10,429.9 $10,238.8 2 2
Total revenues 3,862.1 3,707.5 4 4
Operating income 845.2 772.5 9 7
Net income 497.5 440.9 13 11
Net income per common
share diluted 0.39 0.34 15 12
Six months ended June 30
Systemwide sales $20,128.4 $19,888.5 1 2
Total revenues 7,459.5 7,219.2 3 5
Operating income 1,486.5 1,467.7 1 1
Income before cumulative
effect of accounting change 849.2 819.2 4 3
Cumulative effect of accounting
change, net of tax (98.6) – n/m n/m
Net income 750.6 819.2 (8) (9)
Per common share – diluted:
Income before cumulative
effect of accounting change 0.66 0.62 6 6
Cumulative effect of accounting
change (0.08) – n/m n/m
Net income 0.58 0.62 (6) (6)
* Information in constant currencies excludes the effect of foreign
currency translation on reported results, except for hyperinflationary
economies, such as Russia, whose functional currency is the U.S.
Dollar. Constant currency results are calculated by translating the
current year results at prior year monthly average exchange rates.
n/m Not meaningful
