McDonalds Posts Ninth straight Quarter of Earnings Gain – Might Increase Menu Prices

October 22 00:00 2011

New York, October 22 (RainbowNewsLine.com) – Despite a persistently tough economy, McDonald’s Corp. has continued with its rising streak of net income that went up by 9 percent in Q3 2011. Although more and more customers are patronizing the world’s largest hamburger chain, they might have to get ready to pay more for their favorite burgers.

McDonald’s, after having warded off the recession and its aftermath, is now planning to increase its menu prices for the third time this year in order to cope with the rising cost of beef, buns and coffee and higher labor costs. Although most companies reeling under higher costs of raw materials are raising their prices, they still have to be careful to avoid raising prices too much as customers are now careful as to where to spend their money.

CEO Jim Skinner said in a conference call with analysts that “The economists say we are officially out of the recession, but it hardly feels that way.”

McDonald’s posted a 9 percent rise in net income, to $1.51 billion, in the third quarter which is its ninth straight quarter of earnings gain. Earnings per share of $1.45 beat analysts’ expectations of $1.43. A 14 percent increase in revenue, to $7.17 billion, also beat the $7.02 billion predicted by analysts polled by FactSet.

Skinner said that keeping prices affordable was “paramount” but he did not reveal details of possible price increases. McDonald’s shares rose $3.31, or 3.7 percent, to close at $92.32.

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