News

McDonald's global sales down

McDonald's Corporation announced that global comparable sales decreased 0.3 percent in May.

June 8, 2015

McDonald's Corporation announced that global comparable sales decreased 0.3 percent in May and highlighted the following segment performance:

• U.S. down 2.2 percent
• Europe up 2.3 percent
• Asia/Pacific, Middle East and Africa down 3.2 percent

"McDonald's has embarked on a turnaround plan to reignite our business performance," Steve Easterbrook, president and CEO, said in a press release. "Our talented franchisees, suppliers and employees are placing renewed emphasis on the basics of great-tasting, high-quality food, compelling value and outstanding service. Our goal is to be a modern, progressive burger company that is responsive to consumers' evolving preferences, provides a contemporary experience for our customers and drives long-term value for our system and our shareholders."

U.S. comparable sales decreased 2.2 percent in May, reflecting negative customer traffic and ongoing competitive activity, the company said. McDonald's U.S. is addressing current challenges by offering limited-time menu and value options while testing opportunities to expand convenience, personalization and daypart availability to modernize the business.

Europe's comparable sales rose 2.3 percent in May, with positive results in the U.K., Germany and France partly offset by negative results in Russia. The company attributed Europe's monthly performance to consistent daily value offers, premium platforms, effective marketing and promotional execution to drive demand.

In Asia/Pacific, Middle East and Africa, comparable sales declined 3.2 percent in May as strong performance in Australia was more than offset by continued challenges in Japan and negative performance in China, the company said.

Solid comparable sales in McDonald's Other Countries & Corporate segment, which includes Latin America and Canada, contributed positively to the company's global comparable sales performance for the month, according to the announcement.

McDonald's system-wide sales for the month decreased 7.2 percent, or increased 1.8 percent in constant currencies.

McDonald's tentatively plans to release second quarter results before the market opens on July 23 and will host an investor webcast. Effective July 1, the company will discontinue monthly sales reporting, disclosing sales performance for its new segments in conjunction with quarterly earnings, the announcement said. The approach is an attempt to eliminate single-metric reporting and focus investors on comprehensive disclosure of overall financial performance, aligning with McDonald's longer-term vision for building shareholder value, the company said.