McDonald's today reported higher quarterly earnings on strong momentum in the United States and improved performance in key European markets like France and Germany.
The company also said it expected to repurchase about $1 billion of its shares in the first quarter under a previously announced plan to spend $5 billion to $6 billion on repurchases and dividends in 2006 and 2007.
Net income rose to $608.5 million for the fourth quarter from $573.2 million, or 31 cents per share, a year earlier.
Revenue increased 4 per cent, to $5.23 billion, while sales at McDonald's restaurants open at least 13 months, or same-store sales, rose 4.2 per cent.
In the past three years, McDonald's has revitalised sales at its flagship US business by slowing an aggressive expansion plan, adding new menu items such as meal-sized salads and chicken strips, and extending opening hours.
McDonald's stood by its long-term annual growth forecast, which calls for 3 per cent to 5 per cent sales and revenue growth and 6 per cent to 7 per cent operating income growth.
