This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

McDonald's Strong Performance Continues: July Comparable Sales Up 5.1%

OAK BROOK, Ill., Aug. 8, 2011 /PRNewswire/ -- McDonald's Corporation today announced global comparable sales growth of 5.1% in July. Performance by segment was as follows:

  • U.S. up 4.4%
  • Europe up 5.3%
  • Asia/Pa c ific , Middle East and Africa up 4.0%

"McDonald's continues to deliver great tasting, high quality food at an outstanding value to a growing number of customers around the world," said McDonald's Chief Executive Officer Jim Skinner. "We're creating a unique McDonald's experience that is welcoming our customers into modern restaurants with convenient hours and locations and offering more choice in food and drink options than ever before."

In the U.S., July comparable sales rose 4.4% as McDonald's remains a relevant and affordable choice for consumers. July results were fueled by the popularity of the McCafe beverage line-up, including the recently introduced Mango Pineapple Smoothie, core products including Chicken McNuggets and McDonald's market-leading breakfast.

The strength of McDonald's European business continued with July comparable sales up 5.3% led by performance in the U.K., Russia and Germany. Premium beef and chicken offerings, the growing popularity of breakfast and the ongoing benefit of restaurant reimaging contributed to the month's results.

Comparable sales in Asia/Pacific, Middle East and Africa increased 4.0% led by performance in China and most other markets, partially offset by Japan. APMEA's results benefitted from compelling daypart value options, conveniences such as delivery and drive-thru and locally-relevant menu items.

Systemwide sales for the month increased 14.0%, or 7.1% in constant currencies.

    
    
    
        Percent Increase                 Comparable         Systemwide Sales
                                            Sales               As  Constant
        Month ended July 31,             2011    2010     Reported  Currency
        --------------------------------------------------------------------
        McDonald's Corporation            5.1     7.0         14.0       7.1
        Major Segments: 
          U.S.                            4.4     5.7          5.1       5.1
          Europe                          5.3     5.3         20.1       8.0
          APMEA*                          4.0    10.1         19.2       7.4
        --------------------------------------------------------------------
    
        Year-To-Date July 31,
        --------------------------------------------------------------------
        McDonald's Corporation            4.9     4.9         11.6       6.5
        Major Segments:  
          U.S.                            3.9     3.1          4.5       4.5
          Europe                          5.7     5.3         16.2       8.3
          APMEA*                          4.2     5.9         16.1       5.8
        --------------------------------------------------------------------
            * Asia/Pacific, Middle East and Africa

Definitions

  • 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 July 2011, this calendar shift/trading day adjustment consisted of one less Thursday and one more Sunday compared with July 2010. The resulting adjustment varied by area of the world, ranging from approximately -0.4% to 0.7%. 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.

Upcoming Communications

McDonald's tentatively plans to release August sales on September 9, 2011.

McDonald's is the world's leading global foodservice retailer with more than 33,000 locations serving approximately 64 million customers in 118 countries each day.  More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs