McDonald's Reports Global Comparable Sales For April
May 08, 2015
OAK BROOK, Ill., May 8, 2015 /PRNewswire/ -- McDonald's Corporation today announced that global comparable sales decreased 0.6% in April. Performance by segment was as follows:
- U.S. down 2.3%
- Europe up 1.0%
- Asia/Pacific, Middle East and Africa (APMEA) down 3.8%
"Earlier this week, we announced the initial steps in McDonald's business turnaround plan," said Steve Easterbrook, President and Chief Executive Officer. "We are moving quickly to deliver a better experience to our customers and to realize our vision to become a modern, progressive burger company. While our current performance reflects the significant work ahead, I am confident that we've taken the first critical steps toward positioning the company for long-term profitable growth."
U.S. comparable sales decreased 2.3% in April in the face of ongoing competitive activity and negative customer traffic. To improve sales, the U.S. is working to leverage its decentralized operating structure, simplified menu and consumer insights to deliver value initiatives and menu offerings that resonate with the local markets.
Europe's comparable sales rose 1.0% in April as solid results in the U.K. and Germany were partly offset by negative performance in France and Russia. McDonald's Europe continues to target opportunities to enhance its popular promotional menu options and build on its value, breakfast and family business amid ongoing macro-economic headwinds across much of the segment.
In APMEA, comparable sales declined 3.8% in April due to continued challenges in Japan partly offset by strong results in Australia and other markets. Strengthening McDonald's quality and value perceptions remains a top priority for APMEA.
Strong comparable sales in McDonald's Other Countries & Corporate segment, which includes Latin America and Canada, contributed positively to the Company's global comparable sales performance for the month.
Systemwide sales for the month decreased 8.8%, or increased 1.5% in constant currencies.
Month ended April 30,
Year-To-Date April 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. Typically, 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 2015, this calendar shift/trading day adjustment consisted of one less Tuesday and one more Thursday compared with April 2014. The resulting adjustment varied by area of the world, ranging from approximately 0.3% 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.
McDonald's Annual Shareholders' Meeting will be webcast live on May 21, 2015 at 9:00 a.m. (Central Time) on www.investor.mcdonalds.com. An archived replay and podcast of the meeting will be available for a limited time.
Steve Easterbrook, President and Chief Executive Officer, and Pete Bensen, Chief Administrative Officer, will participate in the Sanford Bernstein Strategic Decisions Conference at 8:00 a.m. (Eastern Time) on May 27, 2015. 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 2015 sales information on June 8, 2015. Financial reporting under the Company's new organizational structure will be effective for periods beginning July 1, 2015.
McDonald's is the world's leading global foodservice retailer with over 36,000 locations serving approximately 69 million customers in over 100 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local business 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, Chris Stent, 630-623-3801, or Media, Heidi Barker, 630-623-3791