McDonald's net income second-quarter 2011

McDonald's Corp.'s net income second-quarter 2011 : McDonald's Corp.'s (MCD) second-quarter earnings rose 15%, as the burger chain says it continues to build momentum, despite the economic headwinds challenging the fast-food industry.

McDonald's expects 4% to 5% growth globally in July same-store sales, which includes sales at restaurants open at least 13 months, even if temporarily closed. The summer boost follows a 5.6% same-store sales increase in the second quarter, led by strong results in June.

Shares of McDonald's rose 2.5% to $88.71 premarket and have risen 21% over the past year through Thursday's close.

McDonald's has consistently outperformed its competitors during and since the recession. Competitive pricing was part of what helped its growth during the economic downturn, but its increasingly diverse menu--ranging from value offerings to higher-margin products like blended-ice drinks, especially popular in the U.S.--have contributed to its positive results of late.

Same-store guest transactions increased 3.8% in the first half of the year, growing at about the same rate as last year.

U.S. same-store sales rose 4.5% in the second quarter. Internationally, where McDonald's is seen to have the most growth potential, same-store sales increased 5.9% in Europe and 5.2% in the Asia/Pacific, Middle East and Africa division.

Drive-throughs, delivery and extended hours in the AMPEA region continue to be key to McDonald's expansion.

But higher commodity costs continue to pressure margins. McDonald's expects commodity inflation to be between 4% and 4.5% in U.S. and Europe this year.

Earlier this month the company announced raises in some menu prices in China to help offset the continued food-cost and wage inflation in the country, which recently reached a three-year high.

In China, McDonald's is up against its American competitor, Yum Brands Inc. (YUM), which has achieved rapid expansion of its KFC chain in the country, including an 18% rise in same-restaurant sales in the second quarter. McDonald's does not break out its China results.

However, McDonald's continues to dominate Yum in the U.S., as its KFC, Taco Bell and Pizza Hut chains all experienced declining same-restaurant sales in the second quarter.

McDonald's reported a profit of $1.41 billion, or $1.35 a share, in the second quarter, up from $1.23 billion, or $1.13 a share, a year earlier. Revenue jumped 16% to $6.91 billion. Excluding currency fluctuations, the increase was 8%.

Analysts polled by Thomson Reuters had most recently forecast earnings of $1.28 on revenue of $6.65 billion. Operating margin edged up to 31.7% from 31%.