Collo vs McDo

Press · 26 Oct 1995

La Tribune — net earnings per share: +17%

La Tribune: in the 3rd quarter of 1995, McDonald's net earnings per share rise by 17%, driven by its international business.

Type
Press article
Date
26 Oct 1995

Summary

Press sheet

La Tribune — 26 October 1995

“3rd quarter 1995 — Net earnings per share: +17%” · results brief / stock market.

Summary

McDonald's Corporation's 3rd quarter 1995 results: revenue +16% for the quarter, +19% over nine months; net earnings per share +17%. Growth comes mainly from international operations (system-wide sales +24% for the quarter), which now account for more than half of operating profit.

Key figures

  • Revenue: +16% (quarter), +19% (9 months); EPS: +17%.
  • System-wide sales: +5% in the USA, +24% internationally.
  • Network: 17,403 restaurants in 84 countries; 1,453 openings since January.

Significance for the case file

Background document: it quantifies the group's financial strength at the time of the events. To be compared with the situation of an isolated lessee-manager in Antibes, called upon to pay his fees while the network head was posting record results — the imbalance of power at the heart of the case.

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Full transcription

Text obtained by optical character recognition (OCR) of the original scan, layout preserved. Automatic recognition — errors remain, especially on degraded faxes. The scan above is authoritative.

McDonald's La Tribune Thursday 26 October 1995 McDonalors Total sales* in millions of dollars Turnover* in millions of dollars 22,179.5 19,023.4 7,209.0 Net profit* in millions of dollars 1,960.5 915.5 Net profit per share* in dollars 1.46 1.25 * 9 months to 30 September 1995 McDonald's Corporation is listed in Paris or RM 3rd quarter 1995 Net profit per share: + 17% McDonald's Corporation announces turnover up 16% in the third quarter of 1995 and 19% over the first nine months of the year, compared with the equivalent periods of 1994. Net profit per share rose by 17% over both periods. In the United States, systemwide sales rose by 5% over the quarter. McDonald's is maintaining its efforts to strengthen its presence in a particularly competitive American market. Its strategy, based on improving the quality/price ratio, promotion programmes and customer satisfaction, favours the group's long-term interest over short-term margins. Internationally, systemwide sales rose by 24% over the quarter and by 30% over the first nine months Operating profit outside the USA contributes more than 50% of total operating profit. Thanks to this performance, the cash surpluses of the American market, formerly devoted in part to international develop- ment, will make it possible to strengthen the company's presence in the United States. At 30 September, McDonald's had 17,403 restaurants in operation in 84 countries and had opened 1,453 restaurants since the start of the year.

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