Fast food giant McDonald's Corp. (MCD) on Wednesday reported a 0.6 percent decline in comparable sales for the month of April, as a slight increase in U.S. sales were more than offset by weakness in Europe and Asia, including the impact of Avian influenza in China.
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.
The Oak Brook, Illinois-based hamburger chain's April global comparable sales decline of 0.6 percent compares to a 3.3 percent increase in comparable store sales in the year-go period. While reporting its financial results for the first quarter in April, McDonald's had projected global comparable sales for April to be "slightly negative".
McDonald's said system-wide sales for the month decreased 0.4 percent on a reported basis for its restaurants worldwide. However, system-wide sales grew 1.9 percent in constant currencies.
Geographically, April comparable sales in the U.S. edged up 0.7 percent, with the national introduction of Premium McWraps, value options and McDonald's breakfast contributing to the monthly results. This compared to an increase of 3.3 percent in the prior-year period. U.S. system-wide sales increased 1.6 percent for the month.
In Europe, comparable sales declined 2.4 percent, as positive performance in the U.K. and Russia were more than offset by Germany, France and other markets. This compared to an increase of 3.5 percent in the same period last year.
Europe's system-wide sales for the month declined 1.8 percent from last year on a reported basis, but increased 0.2 percent in constant currencies.
Comparable sales in Asia/Pacific, Middle East and Africa or APMEA region declined 2.9 percent, reflecting the impact of Avian influenza, primarily in China, and softer results in Japan and Australia. This compared to prior year's growth of 1.1 percent.
System-wide sales for the APMEA region declined 3.4 percent on a reported basis, but rose 2.3 percent in constant currencies.
MCD closed Tuesday's regular trading session at $102.29, up $0.22 on a volume of 4.30 million shares.
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