(Adds details on currency, background, analyst comment)
LOS ANGELES Nov 10 McDonald's Corp (MCD.N) on
Monday said global sales at its fast-food restaurants open at
least 13 months rose 8.2 percent in October, topping analysts'
targets and sending its shares up more than 2 percent.
Same-store sales, a key gauge of retail health, rose 5.3
percent in the United States, 9.8 percent in Europe and 11.5
percent in the Asia/Pacific, Middle East and Africa (APMEA)
RBC Capital Markets analyst Larry Miller said the October
results "were above expectations in every division" and that
the report's one "negative," which was not unexpected, was that
the impact of foreign exchange has started to turn against the
company in its overseas markets.
McDonald's last week said it expects revenue and operating
income to be hurt by foreign currency translation in the
current quarter because the U.S. dollar has gained strength.
RBC's Miller had been looking for overall global sales at
established restaurants to be up 5.5 percent, which he said was
above the consensus call for growth of 5.2 percent.
McDonald's, which has more than 31,000 restaurants in more
than 100 countries, said that systemwide sales for its
worldwide restaurants increased 5.4 percent for the month, or
9.9 percent in constant currencies.
The Oak Brook, Illinois-based company said breakfast,
Southern Style Chicken sandwiches and its Monopoly game helped
drive domestic traffic.
Strong results in the United Kingdom, France and Russia as
well as promotions and value items boosted results in Europe,
while localized menu items, value items and extended hours
helped in APMEA, the restaurant chain said.
McDonald's has been one of the best performing fast-food
chains, beating peers like Wendy's/Arby's Group Inc WEN.N and
Jack in the Box Inc JBX.N at driving customer traffic and
keeping a lid on commodity costs.
Still, rising prices for key ingredients like beef and
cheese have prompted the company to consider changes to its
popular Dollar Menu as the higher cost of making its flagship
Double Cheeseburger pinches franchisees -- whose payments to
McDonald's represent about two-thirds of company profits.
Shares in McDonald's were up $1.15, or 2.1 percent, at
Elsewhere, shares in rival Burger King Holdings BKC.N
were down 0.6 percent. Wendy's/Arby's shares tumbled more than
5 percent, Jack in the Box shares were off about 1.5 percent
and stock in CKE Restaurants Inc CKR.N, parent of the Carl's
Jr burger chain, fell 3.6 percent.
(Reporting by Lisa Baertlein in Los Angeles and Nicole Maestri
in New York; Editing by Steve Orlofsky and Brian Moss)