McDonald's capped a challenging year on a positive note after the company's chief executive officer got the boot in November. The burger giant reported Wednesday that it breached the $100 billion mark in annual sales for the first time.
In over 10 years, McDonald's has registered its biggest same-store profits with growth in all of its global operations. Chris Kempczinski, McDonald's new CEO and President, said his main goal is boosting US customer traffic, which has been declining for over a year.
Same-store profits in the US, or sales at branches that operate at least 13 months, climbed 5 percent in the fourth quarter.
Kempczinksi became the top executive of McDonald's in November after former President and CEO Steve Easterbrook was terminated for violating company policy by engaging in a consensual affair with a worker.
McDonald's net income is pegged at $1.57 billion, or $2.08 a share, up from $1.42 billion, or $1.82 a share. The company's adjusted earnings per share rose $1.97, ahead of the $1.96 FactSet consensus.
McDonald's plans to launch 1,400 new branches this year, including 450 in China. Nearly all of these restaurants will be located outside the US. The company has 38,695 restaurants across continents, 13,846 are in the US.
The fastfood chain's shares have rallied 15.5 percent in the last year while the Dow Jones Industrial Average is up almost 17 percent for the period.
McDonald's noted that Dynamic Yield, a program that recommends products on drive-thru food list based on weather and other factors, is also convincing clients to add items like donut sticks on their orders.
The company acquired Dynamic Yield last March and has integrated the system into menu boards across the US and Australia.
Kempczinski pointed out that it is crucial for McDonald's to perform better at breakfast, since that is the only time of the day restaurant traffic in the US is growing at a fast rate. The company is also facing rising competition as Wendy's reintroduces a new breakfast menu.
McDonald's results came on the heels of the fastfood empire's not-so impressive third quarter, when earnings fell beyond projections by analysts for the first time in two years. A stiff competition in the fastfood segment has also forced many companies to upgrade their food offerings.
McDonald's now offers food deliveries in more than 25,000 restaurants. Delivery has created more than $4 billion in profits worldwide last year, up from $1 billion in 2016, the company said.
The company added DoorDash as a US partner in July, wrapping up its exclusive ties with UberEats. McDonald's partnered with GrubHub in September.
