"2005 was a very sold year for McDonald's," said McDonald's vice chairman and CEO Jim Skinner during the chain's earnings conference call, adding that 2005 was the third consecutive year for profit and revenue growth. During the fourth quarter, McDonald's offered diluted earnings per share of 48 cents for the fourth quarter, pushing its yearly dividend to $2.04 and reflecting an increase of 22% per share during 2004.
During the quarter, the United States was a strong performer for McDonald's, and Europe was a strong performer during 2005 with comp-store sales increasing 2.6% for the year. Specifically, France, Russia and Germany contributed to operating performance.
Throughout the past three years, McDonald's has worked to pull itself from mediocre performance by focusing on renovating its stores and improving its brand image. For 2005, the chain achieved record revenues of more than $20 billion and a global comp-store sales increase of 3.9%.
During 2006, the chain expects to invest $1.8 billion to continue its branding efforts and to open 800 new McDonald's restaurants. Next month, McDonald's will show its leadership position in the quick-serve industry as it becomes the first company to include nutritional information on its packaging. The new packaging will be introduced at the Winter Olympics in Torino.
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