The financial results of McDonald Corp’s are scheduled to be announced for the second quarter before Friday’s market opening. Analysts are expecting profits of the company to increase by 15% compared to the profits of the company in the corresponding quarter of last year. The recent healthier offerings by the company are likely to boost the results. On an average, 21 analysts who were polled by Thomson Reuters have expected the company to post earnings per share around 1.12 dollars per share with estimates ranging between 1.08 dollars to 1.16 dollars per share. The quarterly revenues of the company are expected to go up to around 5.91 billion dollars which marks a 5% increase. These estimates of analysts usually exclude special items.
The Dow component serves more than 32,000 local restaurants that serve more than 60 million people across 117 countries every day. Interestingly, more than 4/5th of the McDonald restaurants across the world are operated by franchisees run by local women and men. According to the company report released recently, consumers were interested to visit McDonald to enjoy the wide spectrum of beverages offered including frappes, value based drinks and the McCafe line-up. The everyday value options topped by the Breakfast Dollar Menu and core classic favorites like Chicken McNuggets are also attracting consumers.
Despite curbs on discretionary spending during the economic crisis, Oak Brook which is the McDonalds based in Illinois, has outperformed every other competitor in the informal eating out market and has been able to notch market share with themed food events, four and three price tier menus, extended hours and restaurant reimaging. The company has also now started to sell strong coffee to capture the market segment dominated by Starbucks Corp which is the specialty coffee retailer. It has also installed many cappuccino and latte counters in 2009. The performance of McDonald has been enhanced largely by the beverage and food value offerings and the new additions including Chicken McNuggets which are Shrek themed and Happy Meal promotions which will motivate kids to eat fruits, put dairy products i their cup holder and eat their vegetables. A line of fruit smoothies for drink holders has also been launched by the company from the beginning of this month. There have also been controversies in the company with the recall of 12 million glasses that featured characters from the movie series Shrek as the designs contained cadmium which is a toxic metal.