McDonald's Profit Rises 2.1%;Prices will increase

McDonald's Corp.'s fourth-quarter earnings rose 2.1%, even as December same-store sales took a hit from the severe weather in the U.S. and Europe. The company also said it will raise prices this year in the face of rising commodities costs, although it didn't get into specifics on the increases.

Chief Financial Officer Pete Bensen said McDonald's is locking in costs where it can and is about as locked in now as it was a year ago. But beef continues to be biggest variable.

Overall, McDonald's raised its 2011 forecast for commodities costs, expecting them to rise 2% to 2.5% in the U.S. and 3.5% to 4.5% in Europe. In October, it was expecting a 2% to 3% increase for 2011.

Related McDonald's Corp Financial Press release

Highlights from financial press release:

Full year 2010 highlights included:

• Global comparable sales increase of 5.0%, with positive comparable sales across all geographic segments for every quarter
• Consolidated revenues up 6% (5% in constant currencies) to a record-high $24 billion
• Combined operating margin increase of 90 basis points to 31.0%
• Consolidated operating income increase of 9% (9% in constant currencies) with the U.S. up 7%, Europe up 8% (12% in constant currencies) and APMEA up 21% (11% in constant currencies)
• Earnings per share of $4.58, up 11% (11% in constant currencies)
• Return of $5.1 billion to shareholders through share repurchases and dividends paid

Fourth quarter highlights included:

• Global comparable sales increase of 5.0%, with the U.S. up 4.4%, Europe up 3.4% and APMEA up 5.5%
• Consolidated revenues increased 4% (5% in constant currencies)
• Earnings per share of $1.16, up 5% (6% in constant currencies)