McDonald's Reports November Comparable Sales
December 09, 2013
OAK BROOK, Ill., Dec. 9, 2013 /PRNewswire/ -- McDonald's Corporation today announced that global comparable sales increased 0.5% in November. Performance by segment was as follows:
- U.S. down 0.8%
- Europe up 1.9%
- Asia/Pacific, Middle East and Africa (APMEA) down 2.3%
"Throughout the McDonald's System we're focused on satisfying our customers by providing a differentiated experience that delivers high-quality food and meaningful value in a comfortable and modern environment," said McDonald's President and Chief Executive Officer Don Thompson. "As consumer expectations and the marketplace continue to evolve, we are making investments in our menu, restaurants and service to strengthen our connection with customers and build our business for long-term profitable growth."
In November, U.S. comparable sales decreased 0.8%. November's performance was supported by breakfast, chicken menu choices and expanded value offerings. Ongoing competitive activity and relatively flat industry traffic trends negatively impacted performance. Looking ahead to 2014, the U.S. is intent on rebuilding its underlying business momentum by strengthening key elements of customer service and leveraging the breadth of menu choices across all dayparts and value tiers.
In Europe, November's comparable sales increased 1.9% as positive performance in the U.K., France and Russia was somewhat offset by negative results in Germany. Amid a tepid informal eating out market, Europe delivered positive results by elevating the customer experience with appealing premium, core and value menu options, compelling promotional food events and continued focus on key dayparts.
Comparable sales in APMEA declined 2.3% in November due primarily to negative results in Japan. To enhance future performance, APMEA is pursuing customer-focused initiatives that broaden accessibility and enhance value across all dayparts.
Systemwide sales for the month increased 1.1%, or 3.1% in constant currencies.
Month ended November 30,
Year-To-Date November 30,
- 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 November 2013, this calendar shift/trading day adjustment consisted of one less Thursday and one more Saturday compared with November 2012. The resulting adjustment varied by area of the world, ranging from approximately 0.9% to 1.6%. 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.
McDonald's tentatively plans to release fourth quarter results before the market opens on January 23, 2014 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 approximately 35,000 locations serving more than 69 million customers in over 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