After a disappointing April monthly performance where global sales were down, McDonald’s comparable sales bounced back in May, across its US, European and Asia/Pacific regions.
Comparable sales rose 2.6pc compared with May last year, driven by a combination of factors, the company said. This compares favourably with a minus-0.6pc global sales result in April.
McDonald’s has recently shifted more emphasis onto value and premium chicken items, where margins are greater compared with beef, at a time when beef commodity prices are rising.
Chief executive officer Don Thompson said global sales growth had been achieved in May, “amidst ongoing uncertainty in the macro environment."
- The company’s North American division showed the largest sales growth, up 2.4pc on a year ago, led by McDonald’s ‘wide range of chicken options and the ongoing appeal of everyday value,’ the company said.
- The company’s Europe division recorded May comparable sales growth of 2.0pc compared with a year ago, driven primarily by positive results in the UK and, to a lesser extent, Russia as both markets added popular summertime promotions featuring premium burgers and specialty menu options. Negative performance in Germany and France dampened the division’s results.
- The Asia, Pacific, Middle East and Africa division showed comparable sales increased 0.9pc reflecting positive performance across a number of markets, relatively flat performance in Japan, and negative results in China, where Avian influenza exerted an influence on consumer patterns.
Financial year-to-date, McDonald’s results do not look so good, though. Globally, sales are still negative 0.2pc compared with a year earlier; North America is behind 0.1pc; Europe behind 0.8pc; and the Asia/Pacific/Middle East, back a hefty 2.4pc.
McDonald's is the world's largest global foodservice retailer with 34,000 locations serving more than 69 million customers each day in 119 countries. Australia is a key supplier of manufacturing meat into the company’s Asia-Pacific and North American operations.
- See Beef Central's earlier report, "GFC impacts on McDonald's first quarter."