McDonald's Reports September Sales and Preliminary Third Quarter EPS
-- Global comparable sales rose 3.9% in September, 4.1% for the third quarter
-- U.S. comparable sales rose 2.7% in September, 3.7% for the third quarter
-- Europe comparable sales rose 6.6% in September, 5.1% for the third quarter
-- Third quarter 2005 earnings per share is expected to be about $0.58
PRNewswire-FirstCall
OAK BROOK, Ill.
Oct 12, 2005
McDonald's Corporation (NYSE: MCD) announced today that global Systemwide sales for McDonald's restaurants rose 6.3% in September, 6.0% in the third quarter and 6.7% year to date. In constant currencies, these increases were 5.0%, 5.1% and 4.9%, respectively.
McDonald's Chief Executive Officer Jim Skinner said, "Combined initiatives focused on providing customers more menu variety, compelling everyday value, convenient and contemporary restaurants, and relevant marketing continue to deliver results worldwide.
"Our U.S. business has now posted 30 consecutive months of comparable sales increases. September's solid performance was primarily due to positive customer response to our new Premium Chicken Sandwiches, more convenient hours and strong breakfast business. This result was despite the impact of the hurricanes in the Gulf and a tough prior year comparison reflecting the successful 2004 Chicken Selects launch.
"In Europe, we're building sales momentum and increasing customer visits in key markets by complementing our classic core menu with enhanced menu variety and compelling value. For example, Germany's limited-time Bigger, Big Mac promotion along with the Ein Mal Eins value menu and recent national coupon promotion drove strong results in the month. In the United Kingdom, we're encouraged by the initial consumer response to the Toasted Deli Sandwich launch that is supported with a significant marketing effort including a strong sampling program.
"In Asia/Pacific, Middle East and Africa, our ongoing initiatives to enhance menu variety and value contributed to comparable sales rising 2.2% for the month and 3.5% for the quarter."
Percent Inc/(Dec) Comparable Systemwide Sales
Sales As Constant
Month ended September 30, 2005 2004 Reported Currency
--------------------------------------------------------------------
McDonald's Restaurants* 3.9 7.3 6.3 5.0
Major Segments:
U.S. 2.7 10.6 3.5 3.5
Europe 6.6 (0.6) 8.7 7.9
APMEA** 2.2 7.3 6.3 3.9
Quarter ended September 30,
--------------------------------------------------------------------
McDonald's Restaurants* 4.1 5.8 6.0 5.1
Major Segments:
U.S. 3.7 8.5 4.4 4.4
Europe 5.1 0.3 6.1 6.4
APMEA** 3.5 5.4 7.0 5.3
Year-To-Date September 30,
--------------------------------------------------------------------
McDonald's Restaurants* 3.8 7.6 6.7 4.9
Major Segments:
U.S. 4.5 10.4 5.2 5.2
Europe 2.6 2.7 7.0 4.0
APMEA** 3.4 6.5 7.6 5.0
* Excludes non-McDonald's brands
** Asia/Pacific, Middle East and Africa
Preliminary third quarter 2005 earnings per share of about $0.58 includes $0.02 per share of income primarily related to the completion of the transfer of the Company's ownership interest in an international market to a developmental licensee. As discussed in the footnotes to the Company's 2004 financial statements, third quarter 2004 pro forma earnings per share of $0.59 included $0.02 per share of share-based compensation expense as well as a $0.07 per share tax benefit primarily due to the transfer of shares between subsidiaries.
Definitions
-- Comparable sales represent sales at all McDonald's restaurants in
operation at least thirteen months including those temporarily closed,
excluding the impact of currency translation. Some of the reasons
restaurants may be temporarily closed include road construction,
reimaging or remodeling, and natural disasters such as hurricanes
Katrina and Rita. Management reviews the increase or decrease in
comparable sales compared with the same period in the prior year to
assess business trends.
-- Information in constant currency is calculated by translating current
year results at prior year average exchange rates.
-- Systemwide sales include sales at all McDonald's restaurants,
including those operated by the Company, franchisees and affiliates.
Management believes Systemwide sales information is useful in
analyzing the Company's revenues because franchisees and affiliates
pay rent, service fees and/or royalties that generally are based on a
percent of sales with specified minimum rent payments.
Upcoming Communications
McDonald's tentatively plans to release third quarter results before the market opens on October 20, 2005, and will host an investor webcast at 10:30 am Central Time. A link to the live and archived webcast will be available on http://www.investor.mcdonalds.com/ .
McDonald's is the leading global foodservice retailer with more than 30,000 local restaurants in more than 100 countries. Approximately 70% of McDonald's restaurants worldwide are owned and operated by independent, local businessmen and women. Please visit our website at http://www.mcdonalds.com/ to learn more about the Company.
Forward-Looking Statements
This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. A list of the factors that could cause actual results to differ materially from those expressed in, or underlying, these forward-looking statements is detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports.
Photo: http://www.newscom.com/cgi-bin/prnh/19990916/MCDLOGOAP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
SOURCE: McDonald's Corporation
CONTACT: Investors: Mary Kay Shaw, +1-630-623-7559, Media, Anna
Rozenich, +1-630-623-7316, both of McDonald's Corporation
Web site: http://www.mcdonalds.com/
http://www.investor.mcdonalds.com/