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U.S. McCafe rollout drives McDonald's May comps
June 7, 2009
OAK BROOK, Ill. — McDonald's Corp. has announced that global comparable sales rose 5.1 percent in May, compared to an increase of 7.7 percent in the same period last year.
Comparable sales increases by segment were as follows:
- United States increased 2.8 percent, with the introduction of the new McCafe espresso-based coffees and popularity of classic menu favorites contributing to the month's result as the company lapped last year's successful launch of the Southern Style Chicken Biscuit and Sandwich.
- Europe increased 7.6 percent, with a strong performance in the United Kingdom, France, Germany and Russia. European customers continue to respond to daypart expansion, menu variety and affordability initiatives.
- Asia/Pacific, Middle East and Africa increased 6.4 percent, primarily due to Australia, where a focus on relevant menu offerings and convenience have delivered sustained strong sales momentum. The segment's results also benefited from positive comparable sales in Japan, but were partly offset by China.
Year-to-date, global comps are up 5 percent, compared to a rise of 7 percent last year. U.S. comps were up 4.5 percent, compared to an increase of 3.0 percent last year. Comps in Europe were up 5.2 percent, compared to a rise of 9.8 percent last year and in Asia/Pacific, Middle East and Africa, comps were up 5.9 percent compared to 9.2 percent last year.
Systemwide sales for McDonald's worldwide restaurants were down 0.4 percent for the month, due to the negative impact of foreign currency translation. In constant currencies, systemwide sales were up 7.0 percent. Foreign currency exchange rates remain volatile and, accordingly, are expected to continue to negatively impact results. If foreign currency exchange rates continue to approximate current levels, the estimated negative translation impact on earnings per share is expected to be $0.08 to $0.09 in the second quarter and about $0.20 for the year.
In addition, second quarter earnings are expected to include $0.02 to $0.03 per share of income due to the developmental license transaction in Indonesia and incremental income related to the sale of Redbox Automated Retail LLC.
Upcoming communication
McDonald's tentatively plans to release second quarter results before the market opens on July 23 and will host an investor webcast. The webcast will be broadcast live and available for replay for a limited time thereafter on www.investor.mcdonalds.com.
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