(Adds analyst comment, link to graphic, share price)
By Lisa Baertlein and Phil Wahba
May 8 McDonald's Corp reported global
sales growth at established restaurants for April on Thursday
that met expectations, as a rebound in Asia helped offset
disappointing sales in Europe and flat results from the United
The world's biggest restaurant chain by revenue said
worldwide sales at restaurants open at least 13 months grew 1.2
percent last month, matching analysts' average estimate,
according to Consensus Metrix.
Asia comparable sales climbed 2.9 percent, exceeding the 1
percent increase analysts expected.
Shares were down 0.35 percent at $101.60 in morning trading
on the New York Stock Exchange.
The fast-food giant has struggled in the U.S. due to
sluggish job and wage growth and stiff competition from
resurgent fast-food rivals such as Wendy's Co Burger
King Worldwide Inc. It has also made missteps that have
complicated menus and slowed service.
Indeed, McDonald's has not reported a comparable sales gain
since October in the United States, which generates 31 percent
of revenue. Analysts polled by Consensus Metrix expected
McDonald's April same-restaurant U.S. sales to be down 0.1
U.S. customers have been spending more per visit at
McDonald's since the chain raised prices by changing its "Dollar
Menu" to the "Dollar Menu & More" last year, Investment
Technology Group analyst Steve West said.
But fewer customers are coming into McDonald's now that it
has fewer $1 "value" offerings to choose from, he said.
"Consumers are feeling that and balking at it," said West,
who added that Yum Brands Inc's Taco Bell chain, which
recently began aggressively promoting new breakfast items,
appears to have picked up some of McDonald's lost traffic.
The company said in a statement that "industry dynamics
Business dwindled in Europe, the chain's top region, which
makes up 40 percent of sales. Comparable sales rose just 0.3
percent, well below the 1.9 percent rise analysts expected.
(Reporting by Phil Wahba in New York and Lisa Baertlein in Los
Angeles; Editing by Bernadette Baum)