McDonald's Reports August Comparable Sales
September 10, 2013
OAK BROOK, Ill., Sept. 10, 2013 /PRNewswire/ -- McDonald's Corporation today announced that global comparable sales increased 1.9% in August. Performance by segment was as follows:
- U.S. up 0.2%
- Europe up 3.3%
- Asia/Pacific, Middle East and Africa (APMEA) down 0.5%
"Ensuring that each of our strategies resonates with our customers is the key to our performance - today and for the long-term," said McDonald's President and Chief Executive Officer Don Thompson. "We remain confident in the fundamental strength of the McDonald's System and our ability to connect with customers and deliver the menu choices, value and convenience they expect from McDonald's."
In August, U.S. comparable sales were up 0.2% reflecting the popularity of the Monopoly promotion dampened by the persistently challenging environment. Moving forward, the U.S. is intent on enhancing results by strengthening its value leadership and featuring relevant new product offerings across all dayparts and price tiers.
In Europe, August's comparable sales increased 3.3% as positive performance in the U.K., France and Russia was slightly offset by negative results in Germany. Europe's results benefited from the introduction of blended-ice beverages in the U.K., strong premium food events in the U.K. and Russia and emphasis on core products in France. Given Europe's tepid economic environment, McDonald's is taking a holistic approach to building demand with a combination of reinvigorated value platforms and compelling limited-time menu choices served in contemporary surroundings.
Comparable sales in APMEA declined 0.5% in August against strong prior year results. The segment's performance reflects negative sales results in Japan, China and Australia partially offset by positive results in many other markets and the shift in timing of Ramadan. APMEA is focused on enhancing its connection with consumers by putting greater emphasis on the everyday affordability, locally-relevant products and convenience that only McDonald's can provide.
Systemwide sales for the month increased 2.8%, or 4.7% in constant currencies.
Month ended August 31, 2013,
Year-To-Date August 31, 2013,
- 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. 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 August 2013, this calendar shift/trading day adjustment consisted of one less Wednesday and one more Saturday compared with August 2012. The resulting adjustment varied by area of the world, ranging from approximately 0.5% to 1.4%. 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.
Tim Fenton, Chief Operating Officer, and Pete Bensen, Chief Financial Officer, will speak at the Goldman Sachs Global Retailing Conference at 8:50 a.m. (Eastern Time) in New York on September 11, 2013. This presentation will be webcast live and available for replay for a limited time thereafter at www.investor.mcdonalds.com.
McDonald's tentatively plans to release third quarter results before the market opens on October 21, 2013 and will host an investor webcast. This webcast will be broadcast live and available for replay for a limited time thereafter at www.investor.mcdonalds.com.
McDonald's is the world's leading global foodservice retailer with over 34,500 locations serving more than 69 million customers in more than 100 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women.
This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K.
SOURCE McDonald's Corporation
Investors, Kathy Martin, 630-623-7833; or Media, Heidi Barker, 630-623-3791