Photo: By _bubby_ on Flickr
Not good same-store sales from McDonald’s. Stock off 2%.————-
OAK BROOK, Ill., Aug. 8, 2012 /PRNewswire-FirstCall/ — McDonald’s Corporation (MCD) today announced that global comparable sales were flat in July. Performance by segment was as follows:
- U.S. down 0.1%
- Europe down 0.6%
- Asia/Pacific, Middle East and Africa down 1.5%
“We are committed to driving the business over the long-term by executing our proven Plan to Win strategy, despite softer global comparable sales in July,” said McDonald’s Chief Executive Officer Don Thompson. “Our leadership team has the experience to effectively manage through the challenging environment and build sales and market share. As a System, we remain focused on providing high quality, affordable meal options, unparalleled convenience and a great McDonald’s experience to the 69 million customers we serve each day.”
In July, U.S. comparable sales were relatively flat as the promotional activity did not offset the effects of the sluggish economy and last year’s launch of the Mango Pineapple smoothie. Customers’ ongoing appetite for McDonald’s breakfast and the McCafe Frappe line-up supported the month’s results. Going forward, the U.S. is focused on driving results by providing a well-balanced combination of value, variety and innovation across the menu.
Europe reported a 0.6% decline in comparable sales for July as strong results in the U.K. and Russia were more than offset by weaker performance in Germany and several Southern European markets amidst an increasingly difficult environment. Europe’s priority remains building guest traffic by featuring enhanced everyday value offerings alongside classic core favourites and appealing premium products.
Asia/Pacific, Middle East and Africa reported a comparable sales decrease of 1.5% for July. Positive results in Australia were more than offset by ongoing weakness in Japan and the negative impact from the shift in timing of Ramadan. Throughout the segment, compelling daypart value platforms and market-leading conveniences continue to differentiate McDonald’s in the region.
Systemwide sales for the month decreased 3.2%, or increased 2.3% in constant currencies.
Don Thompson concluded, “I am confident that McDonald’s will continue to succeed as we execute against our three global priorities of optimising the menu, modernizing the experience and broadening accessibility to our brand.”