NEW YORK (CNN/Money) -
In his first public comments since succeeding the late Jim Cantalupo, McDonald's CEO Charlie Bell told analysts Wednesday he's committed to continuing the turnaround strategy of his predecessor, and expects 2004 to be "another good year" for the company.
"As CEO, I intend to maintain the discipline and focus that Jim put into place," Bell said during the company's first-quarter earnings conference. "The best way to pay tribute to Jim is in sticking with our plan to win."
Bell's presentation was monitored via a Webcast from New York.
McDonald's last week named Bell as its new chief executive after Cantalupo's death of an apparent heart attack. Bell, a 28-year veteran of the world's biggest restaurant chain, is recognized as being the co-architect of the company's revitalization plan implemented a year and a half ago to improve service, food quality and sales.
Oak Brook, Ill.-based McDonald's (MCD: Research, Estimates) posted first-quarter profit Tuesday that rose 56 percent from a year earlier and met Wall Street forecasts on the back of stronger-than-expected sales at its U.S. outlets.
The company earned $511 million, or 40 cents a share, up from last year's $327 million, or 29 cents a share. Analysts had forecast a profit of 40 cents a share, according to First Call.
2.3 million more customers a day
Revenue rose 16 percent to $4.4 billion from $3.8 billion. Analysts had forecast revenue of $4.2 billion.
"In our first quarter, we had 2.3 million more customers a day than the same time last year," Bell said. "We also had the best systemwide comparable sales gains in almost 20 years."
Same-store sales, or sales at restaurants open at least a year among the company's more than 30,000 worldwide restaurants, rose 9.4 percent in the quarter. European sales trends improved in April after softness in March following the launch of the McDonald's salad-plus menu in several markets.
Operating profit margins at the company-owned outlets rose 14.3 percent compared to last year, while in the United States, profit margins at McDonald's-owned restaurants rose 18.2 percent.
"We're not stopping here," said Bell. "We're intent on driving positive results in the U.S. and Europe and implementing new initiatives in Asia and Latin America. I am confident of another good year in 2004."
The company reiterated its outlook for 2005 and beyond, with expectations for revenue growth of 3 percent to 5 percent and operating income growth of 6 percent to 7 percent annually.
Despite McDonald's fifth-straight quarter of positive quarterly results, at least one analyst said he's concerned the company may be heading towards some turbulence ahead.
"We're concerned that McDonald's may not be able to sustain these levels of comparable sales gains over the next 8 to 9 months," said Dean Haskell, analyst with JMP Securities. "We expect sales growth going forward to be in the mid single-digits of between 4 to 6 percent as the company enters a period of tougher comparisons from a year ago."
|
