OAK BROOK, Ill. (
not only easily beat quarterly profit expectations, it grew sales by nearly 7% in the U.S. last month, gobbling up domestic consumer dollars as rival
focuses its growth on China.
McDonald's has done very well stateside in recent years despite the Great Recession and cutbacks in consumer spending. The Golden Arches said early Friday that same-store sales -- or sales at stores open at least one year, a closely watched metric in the restaurant industry, increased by 6.9% in June, the largest gain for that metric since February 2008. For the recent quarter, U.S. same-store sales grew 4.5%.
"The results were outstanding -- June obviously went extremely well for them around the world," Janney Montgomery Scott analyst Mark Kalinowski told
The Wall Street Journal
. "They continue to take market share." The analyst had a buy rating on McDonald's shares.
, where the line item surged 18%. Pizza Hut same-store sales jumped 22% in China, while KFC saw the metric grow 17%.
Such distinct focus on China and emerging market growth comes at a cost, however. As a percentage of system sales for Yum! Restaurants International (YRI), the company's international division, Canada showed a steep decline of 6%, accounting for just 7% of quarterly system sales. Continental Europe also accounted for just 7% of YRI system sales, a 3% uptick year over year. U.K. sales accounted for a healthier 14% of YRI system sales, but that only represented growth of 1% over last year.
. McDonald's does not specifically itemize its results in China.
-- Written by Miriam Marcus Reimer in New York.
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