McDonald's Corporation today announced global comparable sales growth of 3.3 percent in May.
Performance by segment was as follows:
- U.S. up 4.4 percent
- Europe up 2.9 percent
- Asia/Pacific, Middle East and Africa down 1.7 percent
"Our commitment to providing customers with menu variety, value and convenience delivered global comparable sales growth in May despite the increasingly challenging global economic environment," said CEO Jim Skinner. "I am confident we will continue to deliver long-term sustainable growth as we remain focused on the opportunities that will enable Brand McDonald's to further extend our relevance to the 68 million customers who we serve around the world every day."
U.S. comparable sales were lifted by demand for McDonald's breakfast, including the launch of the seasonal Blueberry Banana Nut Oatmeal, coupled with new McCafe beverages, such as the Cherry Berry Chiller, and the ongoing popularity of core menu items.
Europe posted a 2.9 percent increase in comparable sales for May driven by the U.K., Russia and France, partially offset by Germany. Premium menu options, everyday value offerings and the ongoing benefits of reimaging contributed to Europe's May sales.
Asia/Pacific, Middle East and Africa (APMEA) reported a comparable sales decrease of 1.7 percent for May. Positive results in Australia were more than offset by negative results in Japan and, to a lesser extent, China. In these markets, McDonald's continues to focus on daypart value platforms, locally-relevant menu offerings and convenience enhancements, such as delivery and extended hours.
Systemwide sales for the month increased 1.2 percent, or 5.6 percent in constant currencies.
While McDonald's continues to deliver positive global comparable sales growth, ongoing global economic volatility, austerity measures in Europe and increased general and administrative expenses will significantly pressure second quarter results, according to the company. In addition, at current exchange rates, foreign currency translation is estimated to negatively impact second quarter earnings per share by $0.07-$0.09.
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