McDonald’s Corporation (NYSE:MCD) reported that its global comparable sales increased 1.2% for the month of January, higher than the 0.7% average estimate of Wall Street analysts based on data from Consensus Metrix.
The largest restaurant chain operator worldwide said its sales performance in the United States dropped by 3.3%, however it was offset by strong sales in Asia, Pacific, Middle East and Africa (APMEA) with a 5.4% sales increase. McDonald’s Corporation (NYSE:MCD) also achieved 2% sales increase in Europe.
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According to McDonald’s Corporation (NYSE:MCD), its comparable sales in the United States declined due to the severe weather conditions. The company said it is focused on regaining its positive momentum with customer engagement, menu choice, and operations excellence initiatives intended to improve customers experience across the United States.
Its gains in Europe were driven by its customer-focused approach with the integrations of a variety of menu items, and affordability. On the other hand, McDonald’s Corporation (NYSE:MCD) benefited from solid sales in Japan, Australia and other markets in APMEA as the company provided consumers with unique menu options, convenience and affordability tailored to local market tastes and lifestyle.
In a statement, Don Thompson, president and chief executive officer of McDonald’s Corporation (NYSE:MCD) said, “Throughout the McDonald’s System we are committed to elevating the customer experience and enhancing our customers’ relationship with our brand. We are intent on improving our performance by building on our customer-driven strategies and the fundamental strengths of our proven business model.”
Stock declines on U.S. sales
Despite the strong global comparable sales performance of McDonald’s Corporation (NYSE:MCD), its stock price declined by nearly 1% to $95 per share today. The primary reason was its weak sales performance in the United States. The company generated 43% of its operating profit in the country last year.
McDonald’s opens restaurant in Vietnam
McDonald’s Corporation (NYSE:MCD) opened its first restaurant in Ho Chi Minh City in Vietnam. The new location is the 10,000th restaurant of the company in Asia.
In an interview with CNN’s Fortune, Thompson expressed confidence that there is a “pent up demand for McDonald’s in Vietnam. He added that the country had been on the company’s radar screen for a while.
The McDonald’s restaurant in Vietnam has seating capacity for 350 and will be open 24 hours a day. Its menu features a new item tailored to the local market called McPork, which is made of a pork sausage patty on a sesame bun. “We wanted to introduce a pork product because that is the most commonly consumed protein here,” explained Henry Nguyen, a franchisee.