McDonald’s reported a profit of $125.7 million in the fourth quarter, compared to a loss of $343.8 million one year ago.
Revenue rose 17% to $4.6 billion from $3.9 billion for the quarter ended Dec. 31, 2003.
The numbers reflected a $323 million charge for last month’s decision to shed a large part of its portfolio of non-hamburger brand restaurants, including Donatos Pizza chain and some Boston Market chicken restaurants.
U.S. sales turned around partly due to the introduction of new products, extended hours and a high-powered marketing campaign featuring the company’s first ever global brand direction, ‘I’m lovin’ it.’ The company reports success with its new entrée-sized salads, McGriddles breakfast sandwiches and white meat chicken nuggets. Oakbrook, IL-based McDonald’s also did not seem to suffer from the recent U.S. mad cow scare.
“I am energized by the achievements of our system in 2003, particularly by the momentum we built throughout the year,” said CEO Jim Cantalupo. “From the very beginning, we introduced a new level of discipline and focus to all aspects of the business.”
In a separate development, Fred Turner, McDonald’s senior chairman, is retiring after 48 years with the company. Turner, 71, was one of McDonald’s first employees. He worked closely with founder Ray Kroc, succeeded him as chief executive in 1973 and served in that post until 1987.
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