McDonalds Global Sales
Big Mac's International Revenues Sizzle in 2006
McDonald's franchises and operates more than 32,000 fast-food restaurants in over 100 countries. Which 9 countries generate 70% of Micky Dees' revenues?
Restaurants in the U.S. account for about 35% of total revenues (expected to hit US$22 billion in 2006).
Collectively France, Germany and the United Kingdom contribute over 20%.
Canadian revenues comprise about 5% of company totals. Australia, China and Japan revenues add up to 7%, while fast-growing McDonald's restaurants in Brazil generate about 2.5%.
McDonald's revenues by geographic segment in 2005
- Europe ... $7,072 (35% of total company revenues)
- United States ... $6,955 (34%)
- Australia/Asia-Pacific ... $2,815 (14%)
- Latin America ... $1,327 (6%)
- Canada ... $948 (5%)
- Other ... $1,343 (6%)
Amounts are in US$ million. The percentage of total company revenues shows in parentheses.
And The Winner Is...
September 2006 marked the 41st consecutive month of global sales increases for McDonald's when compared to previous reporting periods. Revenue growth in the U.S was fuelled by the introduction of Asian chicken salad, the premium-priced Spicey Chicken Sandwich, more breakfast menu items and extended restaurant hours.
In Europe, McDonald's continues its focus on everyday value menus such as Ein Mal Eins ("one by one") in Germany and Pound Saver in the U.K. along with such premium offerings as salads and Big Tasty sandwiches. McDonald's introduced a rice burger in Taiwan in 2005, that was so successful that the company is also selling this product in other Asian markets in 2006.
As a result, McDonald's European restaurants enjoyed more customer visits and the highest company-operated margins since 2001. Strong sales in Russia, France and Germany surpassed moderate sales decreases in the U.K.
In the quarter ending Septermber 2006, Big Mac's global sales rose 5.8% over the year-earlier period. Margins for both company-operated and franchised restaurants improved in all geographic segments for the third consecutive quarter. Overall revenues increased 10%, while operating income and earnings per share jumped 15% and 17% respectively.
To keep its global momentum going in 2006, McDonald's will become the world's first fast-service restaurant to provide nutritional information on its food packaging on the majority of its food packaging. Big Mac will use easy-to-understand icon and bar chart labelling in more than 20,000 of its restaurants worldwide, and continues to cheerlead a healthy lifestyle which includes exercise.
Perhaps the biggest winners are McDonald's shareowners. In October, the company announced an increase in dividend to $1 per share, an increase of 276% from 2002. McDonald's stock (MCD on NYSE) looks like a modest long-term buy to me at $40 and below.
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