Fast food giant McDonald's Corp. (MCD) on Monday reported a 2.6 percent increase in global comparable sales for the month of May, reflecting higher sales in the U.S. and Europe on new menu options. However, the company reported negative results in China due to the impact of Avian influenza.
Global comparable sales is a metric used to gauge performance of the company's restaurants, whether operated by the company or by franchisees, in operation at least thirteen months including those temporarily closed.
Don Thompson, President and Chief Executive Officer of McDonald's said, "McDonald's strategic initiatives and diligent focus on the customer generated global comparable sales growth in May amidst ongoing uncertainty in the macro environment. Our System is aligned behind providing great service to the 69 million customers who visit us daily."
The Oak Brook, Illinois-based hamburger chain's May global comparable sales increase of 2.6 percent compares to a 3.3 percent increase in comparable store sales in the year-ago period.
McDonald's said system-wide sales for the month rose 3.6 percent on a reported basis for its restaurants worldwide. In constant currency, system-wide sales grew 5.2 percent.
Geographically, May comparable sales in the U.S. rose 2.4 percent, with McDonald's breakfast and a wide range of chicken options contributing to the monthly results. The introduction of the new Egg White Delight sandwich and the recently launched Premium McWraps also aided the results. This compared to comparable sales increase of 4.4 percent in the prior-year period. U.S. system-wide sales increased 3.4 percent for the month.
In Europe, comparable sales increased 2.0 percent, driven primarily by the positive results in the UK and to a lesser extent, Russia. Both markets added popular summertime promotions featuring premium burgers and specialty menu options. These were partly offset by negative performance in Germany and France. This compared to an increase of 2.9 percent in the same period last year.
Europe's system-wide sales for the month rose 5.1 percent from last year on a reported basis, and increased 4.8 percent in constant currencies.
Meanwhile, comparable sales in Asia/Pacific, Middle East and Africa or APMEA region rose 0.9 percent. The results reflect positive performance across several markets and relatively flat performance in Japan, partly offset by negative results in China that were impacted by the Avian influenza. This compared to prior year's comparable sales decline of 1.7 percent.
System-wide sales for the APMEA region declined 0.6 percent on a reported basis, but rose 6.2 percent in constant currencies.
MCD closed Friday's regular trading session at $98.28. In Monday's pre-market trades, the stock is adding $1.81 or 1.84 percent to $100.05.
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