McDonald's Continues to Deliver - Global Comparable Sales Up 8.2% in October
McDonald's October comparable sales increases by segment were as follows:
- U.S. up 5.3%
- Europe up 9.8%
- Asia/Pacific, Middle East and Africa up 11.5%
PRNewswire-FirstCall
OAK BROOK, Ill.
Nov 10, 2008
McDonald's Corporation (NYSE: MCD) announced today that global comparable sales rose 8.2% in October. Systemwide sales for McDonald's worldwide restaurants increased 5.4% for the month, or 9.9% in constant currencies.
McDonald's Chief Executive Officer Jim Skinner said, "McDonald's strong October sales show that we are delivering what customers count on from McDonald's -- choice, variety and high-quality food and beverages at affordable prices."
U.S. comparable sales increased 5.3% in October due to the enduring appeal of McDonald's breakfast, recent product introductions such as Southern Style Chicken, compelling value throughout the menu and the continued popularity of McDonald's Monopoly game.
In Europe, strong performance in the U.K., France and Russia and positive results in nearly all other markets drove a comparable sales increase of 9.8%. Unique menu items and promotions as well as everyday value options continue to resonate with customers and drive results.
Comparable sales were up 11.5% in Asia/Pacific, Middle East and Africa, driven by robust sales growth in Australia and broad-based strength throughout the segment. Locally-relevant menu choices, branded affordability, and extended hours fueled the segment's October sales.
Percent Increase Comparable Systemwide Sales
Sales As Constant
Month ended October 31, 2008 2007 Reported Currency
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McDonald's Corporation 8.2 6.9 5.4 9.9
Major Segments:
U.S. 5.3 5.4 6.3 6.3
Europe 9.8 6.4 2.2 11.6
APMEA* 11.5 9.4 13.0 15.1
Year-To-Date October 31,
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McDonald's Corporation 7.0 6.9 13.2 8.5
Major Segments:
U.S. 3.9 4.9 4.8 4.8
Europe 8.9 7.3 19.8 10.7
APMEA* 8.9 10.2 20.5 11.7
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* Asia/Pacific, Middle East and Africa
Definitions
-- Comparable sales represent sales at all 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 reimaging or remodeling, rebuilding, road
construction 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.
-- Constant currency results exclude the effects of currency translation
and are calculated by translating current year results at prior year
average exchange rates.
-- Systemwide sales include sales at all 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 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. In October 2008, this calendar
shift/trading day adjustment consisted of one less Monday and Tuesday,
and one more Thursday and Friday compared with October 2007. The
resulting adjustment varied by area of the world, ranging from
approximately +0.6% to +1.4%.
Upcoming Communications
McDonald's tentatively plans to release November sales on December 8, 2008.
McDonald's is the leading global foodservice retailer with more than 31,000 local restaurants in more than 100 countries. More than 75% of McDonald's restaurants worldwide are owned and operated by franchisees and affiliates. 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. The factors that could cause actual results to differ materially from our expectations are detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K.
First Call Analyst:
FCMN Contact: katie.hayes@us.mcd.com
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SOURCE: McDonald's Corporation
CONTACT: Investors, Mary Kay Shaw, +1-630-623-7559, or Media, Heidi
Barker, +1-630-623-3791, both of McDonald's Corporation
Web site: http://www.mcdonalds.com/