McDonald’s Corp. reported a 5.3 percent rise in January sales at locations open more than a year, giving credit to its McCafe hot chocolate, Chicken McNuggets and the addition of oatmeal to the menu. A strong gain in Europe, the fast-food chain’s largest region, made up for a relatively weak sales g
ain in the U.S. That topped the average forecast from analysts of 4 percent, according to FactSet Research. McDonald’s shares rose $2.17, roughly 3 percent, to $75.62 in afternoon trading Tuesday on the news. The company has outperformed its competitors during the past few years with an expanding menu and an emphasis on low-priced items. Growth in the U.S., which accounts for 34 percent of the company’s revenue, came in weaker than the rest of the world.
Facebook to move its HQ to Menlo Park
Facebook is moving its headquarters out of Palo Alto, Calif., to the former campus of Sun Microsystems in Menlo Park. The online social network, which has about 2,000 employees worldwide and 1,400 in Palo Alto, said Tuesday it will begin the move in June or July. But the company will continue to occupy its Palo Alto offices through 2011 and possibly 2012. The former Sun Microsystems campus occupies 57 acres and contains nine buildings. Facebook says it also bought an adjacent 22-acre piece of land for future expansion. Facebook, which has well over 500 million users, recently celebrated its seventh birthday.
United, Continental raise round-trip fares
United and Continental airlines are raising fares on some U.S. business travelers by $20 to $60 for a round-trip ticket. The airlines, both owned by United Continental Holdings Inc., raised fares Tuesday on first class and instant-upgrade coach tickets. AMR Corp.’s American Airlines and Delta Air Lines Inc. said they matched the increases. JPMorgan analyst Jamie Baker said the “select” increases were the first recently aimed at business travelers, who are less likely to put off or cancel trips because of rising prices. Baker said Southwest Airlines Co., an influential price-setter, can’t block the increase because it doesn’t sell first-class seats.
Disney quarterly profits up 54 percent
The Walt Disney Co. on Tuesday posted a 54 percent jump in earnings in the latest quarter, beating analyst expectations thanks to higher advertising revenue at its ESPN and ABC television networks, stronger performance at its theme parks and cost cutting at its movie studio. Net income in the three months to Jan. 1 hit $1.3 billion, or 68 cents per share, from $844 million, or 44 cents per share, a year earlier. Revenue grew 10 percent to $10.7 billion from $9.7 billion a year ago. Excluding unusual items, earnings also came to 68 cents per share. That topped the forecast of 56 cents per share by analysts polled by FactSet. Revenue for the fiscal first quarter also topped expectations of $10.5 billion.
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