McDonald's 4th quarter (2006) earnings

Here is the brief about the McDonald's fourth-quarter earnings.

McDonald's reports strong fourth-quarter earnings

McDonald's reported revenue increases in the fourth-quarter of 2006. The diluted shares of $1.00 doubled 2005's share values ($0.48).

“During 2006, we demonstrated our ongoing commitment to enhancing shareholder value with several notable events," said McDonald's CEO Jim Skinner. "We increased our annual dividend by nearly 50% to $1.00 per share, returned nearly $5 billion to shareholders through dividends and shares acquired, and completed the disposition of our ownership interest in Chipotle Mexican Grill."

The revenue, operating income and net income increases were partly due to the disposition of Chipolte ownership and a positive foreign currency translation from the Euro and British Pounds.

Although net income increased dramatically for McDonald's, they also incurred strong operating expenses. High interest rates, stronger foreign currency, income taxes, selling and administrative fees, as well as offering performance-based compensation packages to employees, were costly operating expenses for the quarter.

View McDonald's press release

The full report can be found online at EDGAR (Fourth quarter report, 2006 8K)