McDonald's Momentum Continues; July Comparable Sales Up 3.8%
-- U.S. comparable sales up 1.9% for the month; 4.8% year-to-date July
-- Europe comparable sales up 5.0% for the month; 4.3% year-to-date July
-- Asia/Pacific, Middle East & Africa comparable sales up 5.4% for the month; 5.6% year-to-date July
PRNewswire-FirstCall
OAK BROOK, Ill.
Aug 8, 2006
McDonald's Corporation (NYSE: MCD) announced today that Systemwide sales for McDonald's restaurants worldwide increased 6.7% in July, or 4.9% in constant currencies.
McDonald's Chief Executive Officer Jim Skinner said, "Our strategic focus on serving customers an effective balance of new products and classic menu favorites, as well as premium products and everyday value in convenient, contemporary restaurants is driving solid performance in every area of the world. Our new Snack Wrap -- launched in the U.S. last week -- is one example of how we are successfully building sales by appealing to customers across these multiple dimensions."
McDonald's U.S. business momentum continued in July with comparable sales increasing 1.9%, due to the ongoing popularity of the Company's breakfast menu featuring the new Premium Roast Coffee.
Comparable sales rose 5.0% in Europe driven by positive results in substantially all markets including France, the United Kingdom and Germany. The Company's three-tiered menu approach, with an emphasis in July on premium products complemented by special summertime dessert offerings, contributed to Europe's strong performance.
In Asia/Pacific, Middle East and Africa, comparable sales were up 5.4%, primarily due to strong sales in Japan.
Skinner concluded: "We are energized by our success and the significant opportunities that lie ahead. We intend to continue seizing our growth opportunities by further improving the McDonald's experience with even greater menu choice, variety and value; compelling marketing, outstanding service and enhanced convenience."
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Percent Inc/(Dec) Comparable Systemwide Sales
Sales As Constant
Month ended July 31, 2006 2005 Reported Currency
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McDonald's Restaurants* 3.8 4.9 6.7 4.9
Major Segments:
U.S. 1.9 4.9 2.5 2.5
Europe 5.0 5.3 12.1 6.3
APMEA** 5.4 4.1 6.0 7.6
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Year-To-Date July 31,
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McDonald's Restaurants* 5.1 3.9 5.4 6.2
Major Segments:
U.S. 4.8 5.0 5.6 5.6
Europe 4.3 1.9 2.8 5.4
APMEA** 5.6 3.5 3.5 7.7
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* Excludes non-McDonald's brands
** Asia/Pacific, Middle East and Africa
Definitions
-- Comparable sales represent sales at all McDonald's restaurants,
including those operated by the Company, franchisees and affiliates, 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. 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.
-- The number of weekdays, weekend days and timing of holidays can impact
our reported comparable sales. For the month of July 2006, this
calendar shift/trading day adjustment consisted of one more Monday and
one less Friday, compared with July 2005. The resulting adjustment
varied around the world, averaging down nearly 1%.
Upcoming Communications
McDonald's tentatively plans to release August sales on September 12, 2006.
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.
Additional Information
In connection with the proposed disposition by McDonald's of its interest in Chipotle Mexican Grill, Inc. via a tax-free exchange offer, Chipotle will file with the Securities and Exchange Commission a registration statement that will include an exchange offer prospectus. The prospectus will contain important information about the disposition and related matters. Investors and security holders are urged to read the prospectus, and any other relevant documents filed with the SEC, when they become available and before making any investment decision. Neither McDonald's, Chipotle nor any of their respective directors or officers or any dealer manager appointed with respect to the exchange offer makes any recommendation as to whether you should participate in the exchange offer. You will be able to obtain a free copy of the prospectus (when available) and other related documents filed with the SEC by McDonald's and Chipotle at the SEC's web site at http://www.sec.gov/ , and those documents may also be obtained for free, as applicable, from McDonald's at http://www.investor.mcdonalds.com/ or Chipotle at http://www.chipotle.com/ .
Forward-Looking Statements
Information in this communication contains 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. Such forward-looking statements include, but are not limited to, statements about the benefits of the exchange offer, including future financial and operating results, and each company's plans, objectives, expectations and intentions and other statements that are not historical facts. A list of the factors that could cause actual results to differ materially from those expressed in, or underlying, those forward-looking statements is detailed in the filings of McDonald's Corporation with the SEC, such as annual and quarterly reports and the prospectus (when available). McDonald's Corporation disclaims any obligation to update and revise statements contained in these materials based on new information or otherwise.
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SOURCE: McDonald's Corporation
CONTACT: Investors, Mary Kay Shaw, +1-630-623-7559, or Media, Anna
Rozenich, +1-630-623-7316, both of McDonald's Corporation
Web site: http://www.mcdonalds.com/