McDonald's posts strong second quarter

July 23, 2011 at 12:59 PM

OAK BROOK, Ill., July 23 (UPI) -- U.S. restaurant chain McDonald's said net income rose 19 percent in the second quarter compared to the same period of 2010, as beverage sales have soared.

Drink sales at the McCafe section of the menu rose 29 percent compared to April through June of 2010, the Financial Times reported Saturday.

McDonald's Chief Executive Officer Jim Skinner said McDonald's was doing well through the economic downturn due to a "relevant" menu. The chain opened the McCafe concept in 2009.

Chief Financial Officer Peter Bensen said hard times were not the deciding factor for consumers choosing McDonald's, as evidenced by the dollar menus. "We aren't seeing any dramatic spike in the usage of our dollar menus," he said.

Bensen also said McDonald's had some wiggle room in prices, because food prices at grocery stores were rising faster than prices at restaurants.

In the second quarter, net income rose to $1.41 billion compared to $1.23 billion in the second quarter of 2010.

Total revenue rose 16 percent to $6.9 billion.

The sharper growth figures came from Europe and Asia, where revenue grew 21 percent and 25 percent, respectively. In the United States, revenue grew 4 percent compared to the same period a year earlier.

Like Us on Facebook for more stories from UPI.com  
Topics: McDonald's
Latest Headlines
Top Stories
Compact cannon for British armored vehicles
Volvo unveils new child seat concept
New Zealand military receives medium heavy military trucks
BBC to lay off 1,000 people to make up for $234M in lost revenue
U.S. proposes tighter pipeline spill rules