NEW YORK – McDonald’s Corp. reported a better than expected quarterly profit on Monday, though revenue fell short of Wall Street’s expectations due to a strong U.S. dollar, and their actions fell more than 2%.
The world’s largest hamburger chain also will open 1000 new restaurant this year.
Fourth quarter net income fell 23% to $ 985.3 million, or 87 cents per share, from $ 1.27 billion, or $ 1.06 per share, a year earlier, when results included a large tax-related with the benefit.
Analysts on average expected earnings of 83 cents per share, according to sources.
Revenue in the quarter ended December 31, fell 3% to $ 5.57 billion, down from nearly $ 5.7 million expected by Wall Street. McDonald’s said it was hit by a strong dollar in many foreign markets, including Canada, Europe, Britain and Australia.
Global sales at restaurants open at least 13 months, or same store sales increased 7.2%. Same sales rose 10% in the Asia / Pacific, Middle East and Africa markets, a 7.6% in Europe and 5% in the United States.
The company said its U.S. business benefited from the addition of the Southern Style chicken sandwich and cookies, better service at its drive-through windows and the expansion of its high-end coffee.
The company also has seen more traffic on their fast food restaurants such as recession-weary consumers are looking for low prices.
By 2009, the company said it plans to invest $ 2.1 billion of capital to open 1000 new restaurants McDonald’s and reinvest in their current locations.
McDonald’s (MCD, Fortune 500) shares fell $ 1.20, or about 2.07%, to $ 56.82 in early New York Stock Exchange trading. Shares of McDonald’s are around 9.5% in the same period last year.