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McDonald's Global Comparable Sales Decrease 1.9% In January
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OAK BROOK, Ill., Feb. 8, 2013 /PRNewswire/ -- McDonald's Corporation today
announced that global comparable sales decreased 1.9% in January. Performance
by segment was as follows:
* U.S. up 0.9%
* Europe down 2.1%
* Asia/Pacific, Middle East and Africa (APMEA) down 9.5%
"McDonald's is focused on satisfying the needs of each and every customer
visiting our restaurants in search of great-tasting food and beverages,
outstanding service and everyday value," said McDonald's President and Chief
Executive Officer Don Thompson. "While January's results reflect today's
challenging environment and difficult prior year comparisons, I am confident
that our unwavering commitment to delivering an exceptional restaurant
experience will enhance our brand's relevance and drive long-term results."
January comparable sales increased 0.9% in the U.S. driven by a balanced
offering of premium, core and compelling value options, including the addition
of the new Grilled Onion Cheddar burger to the Dollar Menu. Results for the
month also benefited from convenience and restaurant modernization strategies
designed to provide customers with a better overall experience.
In Europe, comparable sales decreased 2.1% as positive results in the U.K. and
Russia were offset by performance in Germany, France and other markets.
Throughout Europe, McDonald's remains focused on appealing to a broad range of
customer preferences with seasonal food events and enhanced value and breakfast
offerings along with extended operating hours.
In APMEA, January's comparable sales decreased 9.5% due to ongoing weakness in
Japan and negative results in China due primarily to the shift in timing of
Chinese New Year and, to a lesser extent, the residual effects of consumer
sensitivity around the recent supply chain issue in the chicken industry, which
more than offset positive results in Australia.
Systemwide sales for the month increased 0.3%, or 0.7% in constant currencies.
For the month of February, comparable sales will be negatively impacted by
approximately 3 percentage points as prior year results included one extra day
due to leap year.
Percent Increase/(Decrease) Comparable Systemwide Sales
Sales As Constant
Month ended January 31, 2013 2012 Reported Currency
McDonald's Corporation (1.9) 6.7 0.3 0.7
Major Segments:
U.S. 0.9 7.8 1.9 1.9
Europe (2.1) 4.0 3.8 0.6
APMEA (9.5) 7.3 (8.6) (5.1)
Definitions
* Comparable sales represent sales at all restaurants, whether operated by the
Company or by franchisees, in operation at least thirteen months including those
temporarily closed. Some of the reasons restaurants may be temporarily closed
include reimaging or remodeling, rebuilding, road construction and natural
disasters. Comparable sales exclude the impact of currency translation.
Comparable sales are driven by changes in guest counts and average check, which
is affected by changes in pricing and product mix. Management reviews the
increase or decrease in comparable sales compared with the same period in the
prior year to assess business trends.
* The number of weekdays and weekend days can impact our reported comparable
sales. In January 2013, this calendar shift/trading day adjustment consisted
of one less Sunday and Monday, and one more Wednesday and Thursday compared with
January 2012. The resulting adjustment varied by area of the world, ranging
from approximately -0.9% to 0.8%. In addition, the timing of holidays can impact
comparable sales.
* Information in constant currency is calculated by translating current year
results at prior year average exchange rates. Management reviews and analyzes
business results excluding the effect of foreign currency translation and bases
incentive compensation plans on these results because they believe this better
represents the Company's underlying business trends.
* Systemwide sales include sales at all restaurants, whether operated by the
Company or by franchisees. While franchised sales are not recorded as revenues
by the Company, management believes the information is important in
understanding the Company's financial performance because these sales are the
basis on which the Company calculates and records franchised revenues and are
indicative of the financial health of the franchisee base.
Upcoming Communications
The Company plans to release February 2013 sales on March 8, 2013.
McDonald's is the world's leading global foodservice retailer with more than
34,000 locations serving more than 69 million customers in 119 countries each
day. More than 80% of McDonald's restaurants worldwide are owned and operated by
independent local men and women.
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.
SOURCE McDonald's Corporation
Investors, Kathy Martin, 630-623-7833; or Media, Heidi Barker, 630-623-3791
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