Ronald McDonald is looking even more gleeful these days.
McDonald's (MCD) topped market expectations Oct. 12 with a forecast that its third quarter earnings will be 17% higher, boosted by a robust performance of its new breakfast foods and stronger sales worldwide.
So what's up behind the golden arches?
Some of the numbers.
Comparable store sales in the U.S., McDonald's largest market, increased 7.1% in September and 4.1% for third quarter. Europe comparable sales increased 9% in September and 7.6% for third quarter. Globally, McDonald's comp sales increased 7.7% in September and 5.8% for the third quarter.
So it looks like the Euros are really digging McD's. Maybe it's the new, chic image.
The Oak Brook, Ill.-based fast food chain has bet big this year on new menu items for the morning commuter, including a new Snack Wrap, new breakfast items and a premium coffee the company hopes will fare well against rivals...
Whatever the reason, stakeholders should be happy too.
McDonald's said preliminary third quarter 2006 earnings per share are expected to be 68 cents a share...
But this one thing is interesting to me.
"We are increasing relevance, enhancing menu variety and improving customer convenience," Chief Executive Officer Jim Skinner said in a press release Oct. 12.
"Increasing relevance" is an interesting phrase to use. I guess being the favorite of the under 12 crowd isn't good enough. Now, it looks like the fashionable crowd is next on the list.
Seeing that it is McDonalds's, I'm still not sure I can bet against them.
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