January 24, 2014

With a modest bump in profit that reflected on-going marketplace challenges, McDonald's Corp. ended its fiscal year on a flat note.

For the year ended December 31, McDonald's net income rose 2% to US$5,585.9 million, equal to US$5.55 per diluted share, up from US$5,464.8 million, or US$5.36 per share, in fiscal 2012. Total revenues increased 2% to US$28,105.7 million from US$27,567 million last year.

Global comparable sales for the year increased 0.2%, reflecting a higher average check that offset a drop in traffic.

Don Thompson, president and CEO said: "At McDonald's, delivering a consistent customer-focused restaurant experience continues to be our top priority. While 2013 was a challenging year, we begin 2014 with a renewed focus on the global growth priorities that are most impactful to our customers. We are uniting consumer insights with innovation and consistent execution to optimise our menu, modernise the customer experience and broaden accessibility to Brand McDonald's."

For the fourth quarter, net income was US$1,397 million, equal to US$1.40 per share, up slightly from US$1,396.1 million, or US$1.38 per share, in the prior-year period. Total revenues in the quarter increased 2% to US$7,093.2 million from US$6,952.1 million during the fourth quarter last year.

The launch of the new Dollar Menu & More and new limited-time offers weren't enough to lift comparable sales in the US, which declined 1.4% during the quarter, while operating income increased 1%.

Europe's operating income increased 3% on strong performance in the UK, Russia and France, partially offset by weakness in Germany. Comparable sales grew 1% in the quarter.

In the Asia Pacific Middle East and Africa (APMEA) region, quarterly comparable sales decreased 2.4% and operating income dropped 8%, reflecting poor performance in Japan and flat results in China and Australia.

For 2014, the company is targeting capital expenditures at US$2.9 billion to US$3 billion, with 1,500 to 1,600 new restaurant openings and the reimaging of more than 1,000 existing locations. McDonald's said it expects to return US$5 billion to shareholders through dividends and share repurchases.