McDonald’s spent $5.7 billion on dividends and share buybacks in the quarter under review.

In 2007, McDonald’s completed the sale of its businesses in Brazil, Argentina, Mexico, Puerto Rico, Venezuela and 13 other countries in Latin America and the Caribbean to a developmental licensee organisation.

Earnings Guidance

Kinner told the call conference that he expected the slowing U.S economy to knock down between 1 and 2 percent of first quarter sales.

He maintained, however, sluggish U.S comparable sales will recover in 2008 helped by its late closing hours and wide innovations on its menu list and other products.

“For 2008, we remain focused on delivering a great McDonald''s experience to each of the nearly 56 million customers we serve every day,” he said.

“I am confident that our strong global brand, resilient business model and proven Plan to Win strategy will continue to deliver long-term value for our system and our shareholders. I am optimistic about McDonald''s outlook for 2008.”

In 2008, McDonald’s expects to spend $2 billion on capex and dispose over 21 company-owned franchises. The company will concentrate efforts on expanding Asian markets, as well as Russia.

Analysts polled by Thomson Financial have targeted first quarter earnings of 67 cents per share on revenue of $5.72 billion.

Share Price Review

McDonald’s shares lost $3.03, or 5.6%, to $51.07 in Monday trading, having already lost 20% from December’s high of $63.69. Over the past 52 weeks, the stock has traded in the range $42.31 to $63.69. Analysts are now targeting a one-year price of $62.38.


McDonalds is the world’s largest food service retailer with more than 30 000 restaurants servicing 52 million people in over 100 countries. Some of the products offered at the firm include the Big Mac, Quarter Pounder, Chicken McNuggets, French-Fries and Egg McMuffin.