BCN-44 McDonald’s reports higher 4Q profits





McDonald’s reports higher 4Q profits

NEW YORK, Jan 30, 2019 (BSS/AFP) – Fast-food giant McDonald’s said Wednesday
its profits increased in the fourth quarter partly as a result of higher
sales in the US and other key markets.

But the dramatic increase, more than doubling profits to $1.4 billion, was
due mainly to large one-time costs associated with US tax reform in the year-
ago period.

And total revenues declined 3.3 percent to $5.2 billion, the result of
company selling restaurants to franchisers.

Comparable sales rose 2.3 percent in the United States following a shift to
more expensive menu items and price increases. Revenues from the US accounted
for about 37 percent of the global total.

International markets with especially strong sales included Britain,
Germany, Australia, Italy, the Netherlands and Japan, the company said.

McDonald’s has ramped up investment in digital operations, including
smartphone applications and home-delivery in some markets. The company’s 2018
capital spending was $2.7 billion, up from $1.9 billion the prior year.

In 2019, McDonald’s forecast capital spending of $2.3 billion.

“As we begin 2019, we have confidence in our plan and the continued growth
opportunities from delivery, Experience of the Future and digital,” said
Chief Executive Steve Easterbrook in a press release.

“We remain committed to running great restaurants, which will continue to
make a difference for our customers and drive long-term sustainable growth.”

Shares of McDonald’s dipped 0.2 percent to $181.86 in trading prior to the
opening of Wall Street.