McDonald's Corporation today announced results for the fourth quarter and year ended December 31, 2013, reflecting higher revenues and earnings per share for both periods compared with the prior year.
"Around the world, consumers want a satisfying meal at an affordable price from a brand they trust. At McDonald's, delivering a consistent customer-focused restaurant experience continues to be our top priority," said McDonald's President and Chief Executive Officer Don Thompson. "While 2013 was a challenging year, we begin 2014 with a renewed focus on the global growth priorities that are most impactful to our customers. We are uniting consumer insights with innovation and consistent execution to optimize our menu, modernize the customer experience and broaden accessibility to Brand McDonald's."
Full Year 2013 results included:
Global comparable sales increase of 0.2%, reflecting higher average check and negative comparable guest counts
Consolidated revenue increase of 2% (2% in constant currencies)
Consolidated operating income increase of 2% (3% in constant currencies)
Diluted earnings per share of $5.55, up 4% (4% in constant currencies)
Return of $4.9 billion to shareholders through dividends and share repurchases
Fourth Quarter results included:
Global comparable sales decrease of 0.1%, reflecting higher average check and negative comparable guest counts
Consolidated revenues increase of 2% (2% in constant currencies)
Consolidated operating income was flat (up 1% in constant currencies)
Diluted earnings per share of $1.40, up 1% (2% in constant currencies)
Returned $1.3 billion to shareholders through dividends and share repurchases
In the U.S., comparable sales decreased 1.4% in the fourth quarter, while operating income rose 1%. During the quarter, the U.S. evolved its value proposition with the introduction of Dollar Menu & More and featured new limited-time food and beverage options to increase the relevance of its product offerings. Looking ahead, the segment is intent on optimizing current initiatives by strengthening its focus on menu choice, customer engagement and operations excellence to drive sales and profitability.
For the quarter, Europe generated comparable sales growth of 1.0% and increased operating income by 3% (flat in constant currencies), as strong performance in the U.K., Russia and France was partially offset by Germany. Europe continues to emphasize value menu enhancements in key markets, premium menu additions and limited-time offers, and expansion of the breakfast daypart.
APMEA's fourth quarter comparable sales declined 2.4%, and operating income declined 8% (up 1% in constant currencies), reflecting weakness in Japan and relatively flat performance in China and Australia. To strengthen results in this key growth segment, APMEA is focused on accelerating growth across all dayparts with everyday affordability, locally-relevant menu items, expanded conveniences and new restaurant openings.
Don Thompson noted, "The McDonald's System is pursuing the long-term opportunities that exist within the global marketplace by investing in the business to build upon the solid foundation that is already in place and drive future growth and value for our System and shareholders. For 2014, our capital expenditures are targeted at $2.9 - $3.0 billion, providing for 1,500 - 1,600 new restaurant openings and the reimaging of over 1,000 existing locations. Consistent with our long-standing priorities for our use of cash, after investing in our business, we are committed to returning all free cash flow to shareholders over the long term, through dividends and share repurchases. For 2014, we expect to return approximately $5 billion to shareholders through dividends and share repurchases."
Don Thompson concluded, "As we begin 2014, global comparable sales for the month of January are expected to be relatively flat. While near-term challenges remain, we are intent on strengthening our brand to further