News

McDonald's avoids China chicken supply chain crisis

March 8, 2013

McDonald's Corporation released its February comparable sales today, which reflected a negative calendar shift due to the extra Leap Year day in 2012.

Global comp sales decreased 1.5 percent for 2013. However, excluding the negative calendar shift of 3.2 percentage points, global comp sales were up 1.7 percent.

A notable highlight in February's results was China, which experienced positive results and was boosted by the shift in timing of the Chinese New Year. This means McDonald's has likely avoided any negative fallout from the chicken supply crisis that has affected Yum! Brands.

Broken down by segment, results include:

• U.S. decreased 3.3 percent, but were flat excluding leap year comps;
• Europe decreased 0.5 percent; but increased 2.7 percent excluding leap year comps; and
• Asia/Pacific, Middle East and Africa (APMEA) decreased 1.6 percent; but were up 1.5 percent excluding the segment's calendar shift.

"McDonald's continues to deliver what customers want – quality menu choices at everyday affordable prices," said Don Thompson, McDonald's president and CEO. "While February's results reflect difficult prior year comparisons, we remain confident in the fundamental strength of McDonald's business. We have the operating experience to manage through the current challenging environment and the right strategies in place to grow the business for the long term."

In the U.S., the recent addition of the Grilled Onion Cheddar burger and the Hot 'n Spicy McChicken to McDonald's value line-up, as well as the Filet-O-Fish and the limited-time Fish McBites, offered support for the month's results.

In Europe, sales were led by strong performances in the UK and Russia. Europe's priority remains building guest traffic by focusing on premium menu offerings, value and the expansion of breakfast and restaurant operating hours.

In APMEA, McDonald's experienced ongoing weakness in Japan, but it was more than offset by positive results in China and Australia. The segment's February results also benefited from the shift in timing of Chinese New Year.

Systemwide sales for the month decreased 0.9 percent and increased 1.1 percent in constant currencies.

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