January 26, 2006
They're Lovin' It
McDonald's Corp. reported a 53% jump in fourth quarter profits causing its stock to rise to a 5 1/2-year high on Tuesday. This article reports that the jump can be attributed to continuing strong sales at U.S. outlets and improving results in Europe. Also adding to the surge were extended operating hours, cashless payments, new menu items and stronger breakfast sales. CEO Jim Skinner said McDonald’s plans to repurchase about $1 billion of its stock in the first quarter and will open 800 new McDonald's restaurants this year as part of a $1.8 billion capital spending plan. Also, activist shareholder William Ackman, whose hedge fund Pershing Square Capital Management LLC owns about 4.5 percent of McDonald's stock, has been pressuring McDonald’s for a spinoff involving company-owned restaurants. McDonald’s is resisting Ackman’s requests.
Posted by franchiselawblog at January 26, 2006 05:54 PM