McDonald’s reports quarterly profit of $1.27 bn
21 Apr 2012
Global fast-food giant, McDonald's quarterly profit was up around 5 per cent as sales at its US burger joints that have been operrating at least a year rose nearly 9 per cent marking - the biggest quarterly jump in nearly eight years.
The latest results came on brisk demand for high-margin specialty drinks including coffee frappes and fruit smoothies, and new menu items like white-meat-only Chicken McBites.
The chain plans to launch a new drink, the ''Cherry Berry Chiller,'' operating chief Don Thompson, who is set to take over the reins at the company in July from longtime CEO Jim Skinner, said.
McDonald's gained market even as smaller rivals like Wendy's and Burger King continue to lose market share despite mimicking McDonald's innovations, such as its low-priced but high-margin dollar menu.
Skinner told analysts yesterday that it was not the company's first rodeo as he dismissed what have been called short-lived endevours or spurts of enthusiasm that typically occurred when there was a change of leadership.
The veteran of 41 years who was instrumental in turning around the chain, has boosted the productivity of its burger joints by more than 60 per cent since 2004.
