McDonald’s Global Sales Up in May; U.S. Sales Remain Weak

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McDonald’s Corporation (NYSE:MCD), the world’s largest restaurant chain operator reported that its global comparable sales increased by 0.9% in May. The global comparable sales performance of the company was slightly slower compared to the 1.2% sales increase recorded in April.

The global comparable sales of the hamburger restaurant chain operator slightly rose last month due to a rebound in China after worries regarding the avian flu last year.

In a statement, Don Thompson, president and CEO of McDonald’s Corporation (NYSE:MCD), said, Around the world we are pursuing opportunities to provide our customers with their favorite food and drink, create memorable experiences, offer unparalleled convenience and become an even more trusted brand.”

McDonald’s Corporation (NYSE:MCD) said its system-wide sales increased 2.4%, or 3.4% in constant currencies, in May.

McDonald’s regional sales performance

McDonald’s Corporation (NYSE:MCD) reported that its performance in the United States remained weak, with a 1% decline in sales. In April, the company’s sales in its home market were flat.

Its sales in the European region and Asia/Pacific, Middle East and Africa (APMEA) increased by 0.4% and 2.5%, respectively.

According to McDonald’s Corporation (NYSE:MCD), its sales in the United States were affected by ongoing broad-based challenges. The company is enhancing its customer focus through service, value and menu initiatives to stabilize its financial performance.

McDonald’s Corporation (NYSE:MCD) implemented initiatives suvjas promoting its Dollar Menu and More and its popular McCafé coffee last month

“We are intensifying our commitment to place the customer at the center of everything we do and are determined to create experiences that deliver the most meaningful impact for our customers and our business,” said Thompson.

According to McDonald’s Corporation (NYSE:MCD), the sales increase in Europe was primarily driven by the positive performance of its restaurants in France and United Kingdom, but partly offset by negative results in Germany.

In the APMEA region, McDonald’s restaurants in China generated strong results, but overall results were affected by the ongoing weakness of its business in Japan.

Customer-focused strategic framework

Last month, McDonald’s Corporation (NYSE:MCD) announced its customer-focused strategic framework—The Plan to Win and other initiatives to improve long-term shareholder value.

“The Plan to Win along with our competitive advantages, system alignment and financial discipline has served as our strategic roadmap, guiding the execution of our global growth priorities,” said Thompson.

McDonald’s Corporation (NYSE:MCD) expects to achieve the following in addition to already announced plans to optimize its capital and ownership structures and scrutinize G&A spending:

  • Return capital to shareholder ($18 billion to $20 billion) through a combination of stock buybacks and dividend payments between 2014 and 2016.
  • Refranchise at least 1,500 restaurants by the end of 2016
  • Analyze G&A spending with the primary intent of reallocating resources to higher return initiatives and growth areas, including development of the its global digital capabilities

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