McDonald's 4Q net incomes rises 11 pct

NEW YORK (AP) — Budget-conscious diners continue to flock to McDonald's, but investors are beginning to worry about the fast food giant's higher prices and upcoming expenses.

After the company reported today that net income jumped 11 percent in the fourth quarter, CEO Jim Skinner said his company can perform well in any economy.

But Skinner also noted that the struggling global economy, volatile costs for ingredients and low consumer confidence present a challenge for the world's biggest burger chain.

McDonald's, which serves as a bellwether for the fast-food industry, has done well throughout the recession and its aftermath with a two-pronged strategy. It's continued to attract a base of cash-strapped customers by keeping prices low, while also luring in new customers with offerings like smoothies, lattes, and remodeled restaurants.

In the fourth quarter, McDonald's net income of $1.38 billion translated to $1.33 per share, beating the $1.29 predicted by analysts polled by FactSet. Revenue jumped 10 percent to $6.82 billion, slightly above expectations of $6.81 billion.