McDonald's Profits, Boosts Franchises

OAK BROOK, IL-McDonald’s Corp., which is pushing to switch more of its stores to franchise ownership, posted strong results for the third quarter ended Sept. 10 amid a rise of 6.9% in comparable store sales. Net income climbed to more than $1 billion from $843 million for the comparable quarter last year, and sales increased to $5.9 billion from $5.5 billion.

Ralph Alvarez, CEO, said in a conference call with financial analysts that the worldwide chain in the past 12 months has reduced the number of company-owned restaurants by 1,200, or 5%, and that the chain’s company-owned stores now account for 22% of its locations, down from 27% before the reduction. “As we look to optimize our business, we will continue to evolve our ownership mix,” Alvarez told the analysts.