McDon­ald’s growth surges

The Pak Banker - - COMPANIES/BOSS -

: McDon­ald's Corp.,wag­ing a come­back ef­fort un­der chief ex­ec­u­tive of­fi­cer Steve Easter­brook, posted its best quar­terly growth in al­most four years af­ter a move to serve break­fast all day helped fuel US sales. Global same-store sales surged 5% in the fourth quar­ter, the Oak Brook, Illinois-based com­pany said in a state­ment on Mon­day. An­a­lysts had es­ti­mated 3.2%. Profit also topped pre­dic­tions, rais­ing op­ti­mism that Easter­brook can pull McDon­ald's out of its worst slump in more than a decade. Ex­clud­ing some items, fourth-quar­ter earn­ings amounted to $1.28 a share, com­pared with a pro­jec­tion of $1.23. Rev­enue was $6.34 bil­lion in the pe­riod, beat­ing the $6.23 bil­lion es­ti­mate. US same-store sales jumped 5.7%, helped in part by mild weather. An­a­lysts had pre­dicted 2.7%.

The fast-food chain started serv­ing break­fast all day in the US in Oc­to­ber, bow­ing to a long­stand­ing de­mand from cus­tomers. Easter­brook, who took the CEO job in March, also has fo­cused on speed­ing up ser­vice and im­prov­ing or­der ac­cu­racy at the world's big­gest restau­rant chain. "We took bold, ur­gent ac­tion in 2015 to re­set the busi­ness and po­si­tion McDon­ald's to de­liver sus­tained prof­itable growth," Easter­brook said in Mon­day's state­ment. "We en­ter 2016 com­mit­ted to man­ag­ing the busi­ness for the long term." The shares rose as much as 4.5% to $123.72 in early trad­ing af­ter the re­sults were re­leased. In 2015, McDon­ald's gained 26%, out­pac­ing the Stan­dard & Poor's 500 In­dex, which lost 0.7%.

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