Mc Donald's News
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McDonald's's earnings preview < International > July 31st, 2006 No. 1 burger chain McDonald's Corp. reported earnings for the fiscal second quarter last week. McDonald's surprised investors and analysts by releasing 2nd-quarter guidance of 59 cents per share, excluding special items, above average analyst estimates of 56 per share, according to a poll by Thomson Financial. Analysts have since revised their forecasts. During a period where consumers are being increasingly pressured by rising interest rates and higher gasoline prices, as well as shifting to healthier food, the guidance was a strong showing for McDonald's. The company also reported a 5.9 same-store sales jump in June, driven by higher European and breakfast sales. Same-store sales, or sales in stores open at least one year, is a widely used industry gauge of performance. In June, McDonald's said it was partnering with China Petroleum and Chemical Corp. to turn gas stations in China into drive-through restaurants. China is the fastest growing market for McDonald's, and the company has said more than half of its future expansion in China will be drive-throughs. |
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