McCafe Beverages Continue to Boost McDonald's Profits

Second quarter profits rise 15 percent, led by strong performance of McCafe beverages.

July 26, 2011

OAK BROOK, IL - McDonald€™s second quarter profits spiked 15 percent thanks to strong performance of the company€™s McCafe beverages, Bloomberg reports.

McCafe sales for the quarter jumped 29 percent from a year earlier, the company said.

"With the heat wave, a lot of people are going in and getting frozen drinks," said Steve West, an analyst at Stifel Nicolaus & Co. in St. Louis. "McCafe is doing very well."

The chain€™s sales at restaurants open at least 13 months grew 5.6 percent globally during the quarter, more than 30 percent above estimates of 4.1 percent.

Last month, comparable store sales rose 7.7 percent worldwide, the largest monthly increase in nearly three years. In the U.S., the gain was nearly 7 percent, the largest gain since February 2008.

"The results were outstanding €" June obviously went extremely well for them around the world," said Mark Kalinowski, an analyst at Janney Montgomery Scott LLC in New York. "They continue to take market share."

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