McDonald's posts strong year-end sales

CHICAGO - McDonald's Corp. capped off a turnaround year with a modest $125.7 million profit in the fourth quarter, posting strong sales and operating results as it continued a resurgence under CEO Jim Cantalupo.\nThe net gain reported Monday was one of its smallest for a quarter in more than a decade, reflecting a $323 million charge for last month's decision to shed a large part of its portfolio of non-hamburger brand restaurants.\nBut revenues jumped 17 percent as McDonald's showed no ill effects from a U.S. mad cow scare, and results were particularly impressive matched up against the Oak Brook, Ill.-based chain's worst-ever financial quarter and first net loss a year ago.\nNet earnings amounted to 10 cents a share, compared with a loss for the same period a year earlier of $343.8 million, or 27 cents a share. Excluding the 25-cents-per-share charge for the restructuring of its partner brand restaurants, earnings were 35 cents per share. That met the consensus estimate of analysts surveyed by Thomson First Call.\nRevenues rose to $4.56 billion from $3.9 billion.\nCantalupo said the U.S. market, where sales have risen in each of the last nine months, continued its impressive performance with robust sales and margins in the quarter. McDonald's executives are expected to disclose more information on a conference call with analysts Tuesday morning.\nFor the full year, net income was $1.47 million, or $1.15 per share, up from $893.5 million, or 70 cents per share. Revenue increased 11 percent to $17.1 billion from $15.4 billion.\nMcDonald's shares closed up 3 cents at $25.28 on the New York Stock Exchange before the report was released -- up 57 percent since Cantalupo took over at the beginning of 2003. They were trading 3 cents higher in after-hours activity.