EARNINGS ROUNDUP / MCDONALD’S

McDonald’s Corp. proved that its burgers and fries can still tempt thrifty consumers around the world despite a deepening recession that has chomped on the profits and sales of its pricier sit-down competitors.

As most restaurant companies prepare for what will probably be a dismal fourth-quarter earnings season, the nation’s No. 1 hamburger chain reported strong same-store sales in its fourth quarter, helping boost the company’s profit past Wall Street estimates.

“While we clearly prefer a more robust environment, today’s market conditions play to our strengths,” Chief Executive Jim Skinner said.

The Oak Brook, Ill., chain said its net income for the quarter ended Dec. 31 fell to $985.3 million, or 87 cents per share, beating analyst estimates from Thomson Reuters by 4 cents. That compares with $1.27 billion, or $1.06 per share, a year ago, when it had a tax benefit of 33 cents per share. Excluding the tax gain, the company earned 73 cents per share in that quarter.

McDonald’s also managed to reduce operating costs and expenses despite higher costs for beef, cheese and other ingredients. Chief Financial Officer Pete Benson said the company’s overall “basket of goods” -- an approximation of its grocery bill -- rose 10% for the quarter.

High ingredient costs contributed to the chain’s decision to raise the price of its popular double cheeseburger in November and replace the sandwich on the Dollar Menu with a new double burger that has one slice of cheese instead of two.

Revenue fell to $5.57 billion from $5.75 billion amid the effect of a stronger dollar.

McDonald’s shares rose 38 cents to end at $58.40.