Menu changes boost profit

Wednesday, April 14, 2004 | 9:04 a.m.

OAK BROOK, Ill. -- McDonald's Corp., the world's largest restaurant chain, Tuesday said first-quarter net income rose to about 40 cents a share, beating analysts' estimates, because of strong sales in its U.S. stores.

The company was expected to earn 37 cents a share, the average estimate of 19 analysts polled by Thomson Financial. McDonald's had net income of $327.4 million, or 26 cents a share, in the first quarter of 2003. Sales in the United States, McDonald's biggest market, rose 14 percent in the quarter, the company said in its preliminary earnings statement.

Sales in the United States have increased every month for a year as Chief Executive James Cantalupo introduced new foods such as the McGriddle sandwich and entree-sized salads. Sales in Europe fell 2.9 percent last month. McDonald's has struggled in the United Kingdom and Germany amid slowing economic growth.

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