OAK BROOK, Ill., Feb. 9, 2015 /PRNewswire/ -- McDonald's
Corporation today announced that global comparable sales decreased
1.8% in January. Performance by segment was as follows:
- U.S. up 0.4%
- Europe up 0.5%
- Asia/Pacific, Middle East and Africa (APMEA) down 12.6%
McDonald's begins 2015 on a path to regain business momentum
globally. The Company's charge over the coming year is to
accelerate the pace of change and elevate the overall McDonald's
experience in the eyes of its customers. While the Company's
January performance reflects current business challenges,
McDonald's structure and competitive strengths will
provide the capability to change the trajectory of the business
over the long term.
In January, U.S. comparable sales increased 0.4% as positive
breakfast daypart performance was largely offset by the impact of
aggressive competitive activity. McDonald's U.S. is focused
on delivering a simplified national menu alongside greater choice
tailored to local consumer preferences - enabled by the segment's
transition to a new organizational structure.
Europe's comparable sales
increased 0.5% in January as positive performance in the U.K. and
Germany was largely offset by
negative results in France and
Russia. While market dynamics remain challenging in the near
term, McDonald's Europe is focused
on driving sales and guest traffic by strengthening local value
platforms, highlighting the quality of core and premium products
and aggressively pursuing growth opportunities, particularly at
breakfast.
In January, APMEA's comparable sales decreased 12.6% reflecting
broad-based consumer perception issues in Japan, along with the lingering impact of the
supplier issue and a shift in timing of Chinese New Year in China and other markets. Brand recovery
continues to be a top priority throughout the segment, with
emphasis on rebuilding customer trust by strengthening quality and
affordability perceptions.
Strong comparable sales in McDonald's Other Countries &
Corporate segment, which includes Latin
America and Canada,
contributed positively to the Company's global comparable sales
performance for the month.
Systemwide sales for the month decreased 7.9%, or were
relatively flat in constant currencies.
Percent
Increase/(Decrease)
|
|
Comparable
Sales
|
Systemwide
Sales
|
|
|
|
As
|
Constant
|
Month ended January
31,
|
|
2015
|
|
2014
|
|
Reported
|
Currency
|
McDonald's
Corporation
|
|
(1.8)
|
|
1.2
|
|
(7.9)
|
|
0.3
|
|
Major
Segments:
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
0.4
|
|
(3.3)
|
|
1.3
|
|
1.3
|
|
Europe
|
|
0.5
|
|
2.0
|
|
(13.5)
|
|
3.2
|
|
APMEA
|
|
(12.6)
|
|
5.4
|
|
(14.5)
|
|
(9.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Definitions
- Comparable sales represent sales at all restaurants, whether
operated by the Company or by franchisees, in operation at least
thirteen months including those temporarily closed. Some of the
reasons restaurants may be temporarily closed include reimaging or
remodeling, rebuilding, road construction and natural disasters.
Comparable sales exclude the impact of currency translation.
Comparable sales are driven by changes in guest counts and average
check, which is affected by changes in pricing and product mix.
Typically, pricing has a greater impact on average check than
product mix. Management reviews the increase or decrease in
comparable sales compared with the same period in the prior year to
assess business trends.
- The number of weekdays and weekend days can impact our reported
comparable sales. In January 2015,
this calendar shift/trading day adjustment consisted of one less
Wednesday and one more Saturday compared with January 2014. The resulting adjustment varied by
area of the world, ranging from approximately 0.6% to 1.3%. In
addition, the timing of holidays can impact comparable sales.
- Information in constant currency is calculated by translating
current year results at prior year average exchange rates.
Management reviews and analyzes business results excluding the
effect of foreign currency translation and bases incentive
compensation plans on these results because they believe this
better represents the Company's underlying business trends.
- Systemwide sales include sales at all restaurants, whether
operated by the Company or by franchisees. While franchised sales
are not recorded as revenues by the Company, management believes
the information is important in understanding the Company's
financial performance because these sales are the basis on which
the Company calculates and records franchised revenues and are
indicative of the financial health of the franchisee base.
Upcoming Communications
Pete Bensen, Chief Administrative
Officer-elect, and Kevin Ozan, Chief
Financial Officer-elect, will participate in the UBS Global
Consumer Conference at 8:00 a.m. (Eastern
Time) on March 5, 2015. This
presentation will be webcast live and available for replay for a
limited time thereafter at www.investor.mcdonalds.com.
The Company plans to release February
2015 sales on March 9,
2015.
About McDonald's
McDonald's is the world's leading global foodservice retailer
with over 36,000 locations serving approximately 69 million
customers in over 100 countries each day. More than 80% of
McDonald's restaurants worldwide are owned and operated by
independent local business men and women.
Forward-Looking Statements
This release contains certain forward-looking statements, which
reflect management's expectations regarding future events and
operating performance and speak only as of the date hereof. These
forward-looking statements involve a number of risks and
uncertainties. The factors that could cause actual results to
differ materially from our expectations are detailed in the
Company's filings with the Securities and Exchange Commission, such
as its annual and quarterly reports and current reports on Form
8-K.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mcdonalds-reports-global-comparable-sales-for-january-300032468.html
SOURCE McDonald's Corporation