However, sales in the U.S. remain weak amid heavy job losses, economic conditions, and the discount war amongst fast-food chains to lure budget-constrained consumers.

The company, which faces stiff competition from Burger King Holdings Inc. (BKC), Wendy’s/Arby’s Group Inc. (WEN) and Yum! Brands Inc. (YUM) said that the U.S. comparable sales inched up 0.6% in February (versus a 2.8% increase last year for the comparable month) helped by a strong demand for the Olympic-themed Chicken McNugget, $1 breakfast value menu and McCafe beverages.

In Europe, comparable sales climbed 5.4% in February (versus a 0.2% decline last year for the comparable month) fueled by strong performance in the U.K., France and other markets. Sustained focus on core and seasonal value menu offerings contributed to sales.

Comparable sales in APMEA soared 10.5% in February (versus a 0.7% rise last year for the comparable month) buoyed by a robust performance in Japan, China and Australia. The Chinese New Year helped lift sales in APMEA.

McDonald’s, the world’s largest hamburger chain, said system-wide sales at worldwide restaurants surged 11.2% in February. However, in constant currencies, the rate of increase in system-wide sales softened to 6.4%.

We think McDonald’s provides relative safety for the investor, with moderate growth prospects, being exposed to faster-growing international markets. However, the economic headwind, which has affected consumers’ disposable income, is impeding growth. McDonald’s currently operates more than 32,000 restaurants.

Chicago, IL – January 25, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: McDonald’s Corporation (MCD), Burger King Holdings (BKC), Yum! Brands (YUM), Chipotle Mexican Grill (CMG) and Capital One Financial Corp. (COF).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

McDonald’s Earnings Jump

McDonald’s Corporation (MCD) reported robust fourth-quarter 2009 results driven by effective cost control, value offerings and premium products, and a rise in comparable-store sales across all regions.

McDonald’s quarterly earnings of $1.03 per share, excluding one-time items, surged 18% from 87 cents posted in the prior-year quarter, and outdid the Zacks Consensus Estimate by a penny. On a reported basis, including one-time items, earnings came in at $1.11 per share, up 28% from year-ago quarter.

The company's shares were up 13 cents, or 0.21%, to $63.33 in pre-market trading.

The world's largest hamburger chain, McDonald’s said that revenue for the quarter climbed 7% to $5,973.4 million; and increased 2% in constant currencies reflecting positive comparable-store sales and expansion, partially offset by the impact of the refranchising strategy in certain major markets.

Revenue from company-operated restaurants rose 5% to $4,030 million, whereas revenue from franchise-operated restaurants jumped 14% to $1,943.4 million. Total operating income soared 22% to $1,826.3 million, and increased 14% in constant currencies.

Despite a sinking global economy, McDonald’s continues to grow same-store sales while maintaining healthy margins by expanding market share. Global comparable-store sales rose 2.3% during the quarter with U.S. sales up 0.1%, Europe up 4.8% and Asia/Pacific, Middle East and Africa (APMEA) up 1.5%. Management hinted that global comps in January 2010 remain positive.

The new menu products, including Angus Third Pounders and McCafe premium coffee, boosted U.S. comps and operating income (up 5%). McDonald's also began offering $1 breakfast menu to curb falling sales as rising unemployment lowered the restaurant traffic during morning hours.

In Europe and the U.K., France and Russia led operating income growth of 20%. The premium product innovation, daypart extension and restaurant re-imaging program continued to drive market share gains. In APMEA, operating income jumped 51% led by Australia and China, and lower commodity prices.

Total company-operated restaurant margins for the quarter expanded 160 basis points to 18.8%. Restaurant margins increased 150 basis points to 20.3% in the U.S., 130 basis points to 19.2% in Europe, 260 basis points to 17.1% in APMEA, and 220 basis points to 15.8% in Other Countries (Canada and Latin America).

McDonald’s and other fast-food chains, like Burger King Holdings (BKC), Yum! Brands (YUM), Chipotle Mexican Grill (CMG) are faring better than casual and upscale dining restaurants, as budget-constrained consumers are trending towards lower-priced dining options.

Capital One Revenue Surpasses

Capital One Financial Corp.’s (COF) fourth quarter net income from continuing operations of 90 cents per share was substantially better than the Zacks Consensus Estimate of 45 cents. This also compares favorably to a net loss of $3.67 per share in the year-ago period.

Results for the quarter benefited over the prior-year quarter primarily from increased revenues. Also, resilience and strong profitability of the domestic credit card and auto finance businesses acted as positive catalysts to stave off a weak economy and credit headwinds. Additionally, a substantial decrease in provision for loan losses was impressive during the quarter. However, an increase in operating expenses was the downside.

Including the loss from discontinued operations, Capital One’s GAAP net income came in at $375.6 million or 83 cents per share, compared to net loss of $1.5 billion or $3.74 in the earlier quarter.

For full year 2009, Capital One’s earnings came in at $319.9 million, or 74 cents per share, compared to a net loss of 78.7 million or 21 cents in the previous year. Results for the current year were negatively impacted by $563.9 million or $1.31 per share outflow for the repayment of government bailout money.

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About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
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Visit: www.zacks.com

The US dollar rose to one-month high against the euro, rising 0.9% to 76.21 against a basket of foreign currencies.  Meanwhile, US Treasuries also lured investors, with the price on the 10-year gaining 11/32, and the corresponding yield dropping to 3.39%.  Gold prices continued their downward journey, falling 1.8% to $1142.80.

The Dow Jones industrial average tumbled 104 points, or 1%. The broader S&P 500 index lost 11 points, or 1%. The Nasdaq composite retreated 17 points, or 0.8%.  Market breadth was negative. On the New York Stock Exchange, declining issues beat those that advanced two-to-one on volume of 1.18 billion shares. 

Individual company reports however continued to paint a not-so-rosy picture.  McDonald's (NYSE:MCD) reported global same-store-sales rose only 0.7% in November, with domestic sales down 0.7%.  Shares in McDonald’s fell 2.1%.  3M (NYSE:MMM) fell 1.0% after providing a lower-than-expected guidance.  Kroger (NYSE:KR) plunged 11.9% after it reported third quarter earnings below estimates and lowered its guidance for 2010 to $1.60 to $1.70.  PepsiCo (NYSE:PEP) shares fell 1.2% after the firm lowered the top end of its earnings and revenue forecast due to soft North American drink sales.  JP Morgan (NYSE:JPM) said it sees additional losses on home loans and credit card delinquencies next year.   Also, banking analyst Meredith Whitney cautioned consumers are "getting kicked out of the financial system" by tight credit markets.

Losses were broad based in yesterday's trading.  On the DJIA twenty-nine of the thirty components fell. Of the NASDAQ's 100, only twenty-two firms managed to end in the green, sending it 0.8% lower to 2,173. On the S&P500, 406 company shares declined, taking the index to 1,092, for a 1.0% drop.  All the S&P500 ended in the red yesterday.  Leading the list of losers were oil and gas (-1.8%), basic materials (-1.8%), industrials (-1.3%), consumer goods (-1.0%) and consumer services (-1.0).

On the positive side, Texas Instruments (NYSE:TXN) raised its fourth-quarter earnings outlook and raised the bottom-end of its previous revenue estimate; however, the shares fell 1.1% as the raised guidance still came in below expectations.  Goldman Sachs' (NYSE:GS) strategists also offered optimism for an extension of the S&P500's 61% off-its-low rally, projecting a 13% gain to 1,250 by 2010 yearend.

The US dollar rose to one-month high against the euro, rising 0.9% to 76.21 against a basket of foreign currencies.  Meanwhile, US Treasuries also lured investors, with the price on the 10-year gaining 11/32, and the corresponding yield dropping to 3.39%.  Gold prices continued their downward journey, falling 1.8% to $1142.80.

The Dow Jones industrial average tumbled 104 points, or 1%. The broader S&P 500 index lost 11 points, or 1%. The Nasdaq composite retreated 17 points, or 0.8%.  Market breadth was negative. On the New York Stock Exchange, declining issues beat those that advanced two-to-one on volume of 1.18 billion shares. 

Individual company reports however continued to paint a not-so-rosy picture.  McDonald's (NYSE:MCD) reported global same-store-sales rose only 0.7% in November, with domestic sales down 0.7%.  Shares in McDonald’s fell 2.1%.  3M (NYSE:MMM) fell 1.0% after providing a lower-than-expected guidance.  Kroger (NYSE:KR) plunged 11.9% after it reported third quarter earnings below estimates and lowered its guidance for 2010 to $1.60 to $1.70.  PepsiCo (NYSE:PEP) shares fell 1.2% after the firm lowered the top end of its earnings and revenue forecast due to soft North American drink sales.  JP Morgan (NYSE:JPM) said it sees additional losses on home loans and credit card delinquencies next year.   Also, banking analyst Meredith Whitney cautioned consumers are "getting kicked out of the financial system" by tight credit markets.

Losses were broad based in yesterday's trading.  On the DJIA twenty-nine of the thirty components fell. Of the NASDAQ's 100, only twenty-two firms managed to end in the green, sending it 0.8% lower to 2,173. On the S&P500, 406 company shares declined, taking the index to 1,092, for a 1.0% drop.  All the S&P500 ended in the red yesterday.  Leading the list of losers were oil and gas (-1.8%), basic materials (-1.8%), industrials (-1.3%), consumer goods (-1.0%) and consumer services (-1.0).

On the positive side, Texas Instruments (NYSE:TXN) raised its fourth-quarter earnings outlook and raised the bottom-end of its previous revenue estimate; however, the shares fell 1.1% as the raised guidance still came in below expectations.  Goldman Sachs' (NYSE:GS) strategists also offered optimism for an extension of the S&P500's 61% off-its-low rally, projecting a 13% gain to 1,250 by 2010 yearend.

Chicago, IL – October 15, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Domino’s Pizza (DPZ), Yum! Brands Inc. (YUM), Burger King Holdings (BKC), McDonald’s Corp. (MCD) and Chipotle Mexican Grill (CMG).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Wednesday’s Analyst Blog:

Domino’s Beats Zacks Consensus

Domino’s Pizza (DPZ), one of the leading pizza delivery chains, recently reported better-than-expected third quarter results. Despite a high-single digit fall in the top-line, the company was able to achieve high-double digit rise in the bottom-line on the back of effective cost control, lower interest expense, and expansion of international stores.

Cost of sales fell 10.3% year on year to $219.6 million due to commodity price deflation and lower delivery costs, offset partially by higher labor expenses. Interest expense dipped 4.5% to $24.5 million due to a lower debt balance. During the quarter, Domino’s repurchased $71.8 million of principal senior notes.

Domino’s quarterly earnings of 17 cents a share, surpassed the Zacks Consensus Estimate of 15 cents, and soared 30.8% from 13 cents posted in the prior-year quarter. On a reported basis, including one-time items, earnings came in at 31 cents a share, up 82.4% from 17 cents delivered in the year-ago quarter.

Despite a rise in net profit, shares of Domino’s fell 10% on Tuesday to close at $8.43 on a steeper-than-expected fall in the top-line. Revenues slipped 6.5% to $302.7 million. Comparable-store sales remained flat in the United Sates but were up 2.7% internationally, the 63rd consecutive quarter growth.

The company’s store-operating profit rose 26.4% to $12.5 million due to lower food, delivery and utility costs. The store-operating margin expanded 450 basis points to 17.2%.

Domino’s and other fast food chain operators like Yum! Brands Inc. (YUM), Burger King Holdings (BKC), McDonald’s Corp. (MCD) and Chipotle Mexican Grill (CMG) are faring better than casual and upscale dining restaurants, as budget-constrained consumers are trending towards lower-priced dining options.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com