McDonald’s Profit Up 11% in Q4, More Stores to Open

While the recession has been a bit rougher on luxury goods and services, McDonald’s had a great fourth quarter in 2011, the company disclosed in a statement today.

Sales jumped an impressive 11% in Q4, and the company credits aggressive value item pricing as well as some limited edition items, like the McRib, for the quarter’s success. And while the company has experienced gains over last year, it is not taking the successes in stride- in a call with investors, McDonald’s CEO Jim Skinner noted that the overall climate is still competitive as cash-strapped consumers seek out cheaper dining options:

“The global economy remains challenging with the recovery predicted to be slow. Our industry still faces significant headwinds including flat the slow growth, low consumer confidence and volatile commodity prices.”

The gains are a bit more impressive when contrasted with increases in goods costs approaching 5% in 2011. And for 2012, the company predicts similar ingredients cost upticks, mostly in the first and second quarters of the year. In concert with this morning’s investor call, the company put out a press release discussing not only their Q4 results, but their strategies to maintain momentum going forward in 2012. In the release, Skinner disclosed expansion plans to fortify growth:

“As we begin 2012, we are intensifying our efforts toward the global priorities that represent our greatest opportunities under the Plan to Win – optimizing and evolving our menu, modernizing the customer experience and broadening accessibility to our Brand. In 2012, we plan to invest about $2.9 billion of capital – roughly half dedicated to opening more than 1,300 new McDonald’s restaurants and the other half allocated to investing in our existing locations, including the re-imaging of over 2,400 restaurants. I am confident that the investments we are making today will yield long-term value for our shareholders.”

Despite the company’s news of better than expected performance in Q4, shares were down 1.5% immediately following the call.