McDonald’s Corp., the world’s largest hamburger chain, keeps churning out a profit – this time due to unexpectedly balmy weather and new products such as oatmeal and Chicken McBites.
The company netted $1.27 billion in income, or $1.23 per share, in its first quarter. That’s a 5% increase from the $1.21 billion, or $1.15 per share, it earned during the same period in 2011.
Note the absence of one-time, game-changing accounting charges that have been seemingly omnipresent this earnings season.
McDonald's revenue jumped 7.1% to $6.5 billion.
Even though McDonald’s is feeling pressure from rising food costs, it so far has managed to maintain a strong sales pace by maintaining a loyal base for its core burgers and fries while also branching into more healthful or premium options such as frappes and garden salads.
The model, ushered in by retiring Chief Executive Jim Skinner, has been so popular that competitors such as Burger King have recently begun copying it.
Same-store sales increased 7.3% at global McDonald’s branches open for more than a year, boosted in part by an extra leap year day.