United States-McDonalds sales and profits up.
UNITED STATES-WORLD BIGGEST BEEF RETAILERS.
McDonald’s Corp. Monday reported a 7.1% increase in global comparable sales for the month of January compared to an increase of 5.7% in January 2008. Systemwide sales for McDonald’s worldwide restaurants were up 2.6% for the month, or 9.1% in constant currencies. Further, the company warned that comparable sales for February would be hurt as the year-ago month had an extra day due to the leap year.
The Oak Brook, Illinois-based company said in the U.S., comparable sales rose 5.4% in January, compared to 1.9% last year, driven by value across the menu along with the popularity of McDonald’s core menu and breakfast.
In Europe, the U.K., France, and Russia led January’s 7.1% comparable sales increase in comparison with an 8.2% increase in January last year. Across Europe, the combination of premium menu offerings, classic favorites and everyday affordability continue to deliver results, the company noted.
January comparable sales were up 10.2% in Asia/Pacific, Middle East and Africa due to strong sales growth in Australia, China and many other countries. Locally relevant chicken and beef choices, convenient operating hours and successful Chinese New Year promotions contributed to January’s performance in this geography. In January 2008, comparable sales increase for this region was 7.8%.
The world’s leading hamburger chain, a Dow component, is more or less a household name in the U.S., with offerings such as World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. McDonald’s has nearly 32,000 local restaurants in more than 100 countries. More than 75% of the restaurants worldwide are owned and operated by franchisees and affiliates.
According to the company’s chief executive officer Jim Skinner, "2009 is off to a good start for McDonald’s as our Plan to Win is working in every area of the world. McDonald’s continues to appeal to customers as we offer high quality, affordable meal options and unparalleled convenience."
While expressing satisfaction over the comparable sales performance around the world in January, Skinner warned that for February, comparable sales would be hurt by about 4% points, as prior year results included one extra day due to leap year. This compares with a calendar shift benefit of about 2 percentage points in January.
The company last month reported a decrease in fourth-quarter profit to $985.3 million or $0.87 per share from $1.273 billion or $1.06 per share reported for the fourth quarter of the previous year. The 2007 results include $0.35 per share of income tax benefits, though partially offset by 0.02 per share of income tax expense related to the impact of a tax law change in Canada. Total revenues for the fourth quarter dropped to $5.565 billion from $5.754 billion reported for the same period last year.
