McDonald's global sales rebound in November

Dec. 10, 2012

After experiencing a rare decline in sales in October, McDonald's rebounded in November, with a global comp sales increase of 2.4 percent.

Performance by segment was:

  • U.S. up 2.5 percent;
  • Europe up 1.4 percent;
  • Asia/Pacific, Middle East and Africa up 0.6 percent.

This is compared to a 1.8-percent drop in global comp sales in October, the company's first monthly sales drop since March 2003. U.S. and Europe sales during October were both down 2.2 percent, while APMEA was down 2.4 percent.

Shortly after these results were released, McDonald's replaced Jan Fields, president of the U.S. division, with Jeff Stratton, former global chief restaurant officer.

Commenting on the November results, CEO and president Don Thompson said the company is strengthening its focus on menu optimization, customer experience modernization and broadened accessibility.

"McDonald's is a destination for more than 69 million customers every day because we offer great-tasting, high-quality food in increasingly modern and appealing restaurants," he said. "We are strengthening our focus on the global priorities that are most impactful to our customers ... to move our business forward amid today's broad-based economic and competitive challenges. I am confident that these strategies and the actions we are taking will solidify our foundation and deliver long-term profitable growth in the future."

U.S. sales during the month benefited from the breakfast daypart, value offerings, premium menu options such as the limited-time Cheddar Bacon Onion sandwiches, and the beverage lineup.

In Europe, comparable sales increased as positive results in the U.K., Russia and other markets were partly offset by performance in Germany. Across the segment, enhanced value platforms and meal combinations, promotions featuring premium menu options and the modernization of Europe's restaurants contributed to November's sales performance.

In APMEA, November's comparable sales increased as positive results in Australia and other markets were largely offset by ongoing weakness in Japan. Throughout APMEA, expanded value programs, locally-relevant menu variety, convenience and service enhancements continue to be key drivers.

Systemwide sales for the month increased 3.2 percent, or 4.8 percent in constant currencies.

According to Reuters, November's results far exceeded expectations, as analysts predicted a 0.17 percent sales increase.

December's sales are expected to remain positive, as the company will bring back its cult-favorite McRib on Dec. 16.

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Topics: International , Operations Management

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