OAK BROOK, Ill., US – McDonald’s Corporation today announced that global comparable sales increased 1.2% in April.
Performance by segment was as follows:
- U.S. was flat
- Europe up 0.3%
- Asia/Pacific, Middle East and Africa (APMEA) up 2.9%
“We are strengthening our business plans by emphasizing customer-driven strategies,” said McDonald’s President and Chief Executive Officer Don Thompson.
“We remain focused on delivering an outstanding restaurant experience by serving our customers their favorite McDonald’s food and drinks and offering compelling value, choice and convenience to create easy, memorable experiences.”
In April, U.S. comparable sales were flat as industry dynamics remained challenging. McDonald’s U.S. remains focused on strengthening its appeal to customers through quality food, outstanding service and good value.
During the month, the U.S. featured McDonald’s popular breakfast options complemented by a McCafé coffee promotion and introduced a new premium sandwich, the Bacon Clubhouse.
Europe’s comparable sales rose 0.3% in April as positive performance in the U.K. and France was mostly offset by negative results in Germany. Strong promotional performance, value menu enhancements and growth at breakfast contributed to the segment’s results.
Comparable sales in APMEA increased 2.9% in April. Strong results in China, including comparison against the prior year impact from Avian influenza, and positive results in Australia and many other markets were partially offset by ongoing weakness in Japan.
Convenience initiatives, enhanced value offerings and McDonald’s menu variety contributed to the segment’s monthly performance.
Systemwide sales for the month increased 2.5%, or 3.7% in constant currencies (click to enlarge).
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. Generally, pricing has a greater impact on average check than 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 April 2014, this calendar shift/trading day adjustment consisted of one less Monday and one more Wednesday compared with April 2013. The resulting adjustment varied by area of the world, ranging from approximately 0.1% to 0.4%. 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
Doug Goare, President of McDonald’s Europe, and Dave Hoffmann, President of McDonald’s APMEA, will participate in a Europe and APMEA Investor Meeting at 10:00 a.m. (Central Time) on May 16, 2014. This presentation will be webcast live and available for replay for a limited time thereafter at www.investor.mcdonalds.com.
McDonald’s Annual Shareholders’ Meeting will be webcast live on May 22, 2014 at 8:00 a.m. (Central Time) on www.investor.mcdonalds.com. An archived replay and podcast of the meeting will be available for a limited time.
Don Thompson, President and Chief Executive Officer, and Pete Bensen, Senior Executive Vice President and Chief Financial Officer, will participate in the Sanford Bernstein Strategic Decisions Conference at 9:00 a.m. (Eastern Time) on May 28, 2014. This presentation will be webcast live and available for replay for a limited time thereafter at www.investor.mcdonalds.com.
The Company plans to release May 2014 sales information on June 9, 2014.
