OAK BROOK, Ill. – Net income at McDonald’s Corp. fell 1 percent during fiscal 2012, and the company said it expects lower January global comparable sales as it faces pressure from the global operating, economic and competitive environment.
For the year ended Dec. 31, 2012, the company had net income of $5,464.8 million, equal to $5.36 per share on the common stock, which compared with $5,503.1 million, or $5.27 per share, during the previous year. Total revenue during the year was $27,567 million, up 2 percent from $27,006 million during the previous year.
“Throughout 2012 we concentrated our efforts behind the global priorities that represent our greatest opportunities under the Plan to Win — optimizing our menu, modernizing the customer experience and broadening accessibility to our brand,” said Don Thompson, chief executive officer. “McDonald’s continued to grow by remaining focused on what matters most to our customers, although our results reflect the impact of the challenging global operating, economic and competitive environment.”
During the fourth quarter ended Dec. 31, net income rose 1 percent to $1,396.1 million, or $1.38 per share, which compared with $1,376.6 million, or $1.33 per share, during the same quarter of the previous year. Revenue was $6,952.1 million, up 2 percent from $6,822.7 million during the same quarter of the previous year.
“As we begin the new year, our average annual long-term targets in constant currency remain intact: System-wide sales growth of 3 percent to 5 percent, operating income growth of 6 percent to 7 percent, and return on incremental invested capital in the high teens,” Thompson said. “We believe these targets remain realistic and sustainable for a company of our size and maturity. In 2013, we plan to invest about $3.2 billion of capital to open between 1,500 to 1,600 new McDonald’s restaurants and to reinvest in our existing locations, including reimaging more than 1,600 locations worldwide. We are confident that now is an opportune time to invest in our restaurant portfolio in ways that will yield value for all stakeholders in the future.”
|Enhance your industry IQ
Sign up for our free newsletters to stay informed on each day’s news and trends