OAK BROOK, Ill. — McDonald's Corp. has reported strong global comparable sales and a 4 percent net income growth for the first quarter ended March 31, the company has announced.
Global comps increased 4.3 percent — compared to an increase of 7.4 percent last year — despite one less trading day in the quarter due to 2008 being a leap year. U.S. comps were up 4.7 percent. In Europe comps were up 3.2 percent, and in Asia/Pacific, Middle East and Africa comps were up 5.5 percent, although China reported weaker sales. U.S. stores experienced increased sales of chicken, breakfast and beverages.
Revenues for the quarter were $5.1 billion, down 10 percent compared to revenues of $5.6 billion in the same period last year, weakened by the strong U.S. dollar. Excluding the currency translation, revenues would have seen a 2 percent increase.
Net income for the quarter was $979.5 million, a 4 percent increase compared to $946.1 million in the same period last year. Excluding the currency translation, net income would have been up 13 percent.
"McDonald's business remains strong, despite the economic concerns around the world," said McDonald's CEO Jim Skinner. "Our well-known value proposition and unparalleled convenience continue to resonate with customers. I remain confident that we have the right strategies in place to grow the business and provide value into the future."
Industry trends
According to The NPD Group's Consumer Reports on Eating Share Trends (CREST), which tracks consumer usage of commercial foodservice, customer counts at quick-service restaurants declined by 1 percent this winter, the first loss for the QSR segment since winter 2003. This follows stable customer counts in the fall.
Consumers continued to cut back most on visiting commercial foodservice for supper, the daypart with the steepest decline this quarter. At the same time, traffic trends at lunch turned negative, the report said.
Barclays Retail and Restaurants Conference
Pete Bensen, chief financial officer, will speak at the Barclays Retail and Restaurants Conference on April 29 at 8 a.m. Eastern time. This presentation will be webcast live and available for replay for a limited time thereafter at the company's Web site.
Investor conference
An archived webcast and podcast of the McDonald's Corp. investor conference will be available for a limited time at www.investor.mcdonalds.com. The company plans to release April 2009 sales information May 8.
