McDonald's reports same store sales rise 3.1% in May, disappoints Street
McDonald's (NYSE:MCD) announced Wednesday that global comparable store sales rose 3.1% during the month of May, with international locations seeing the biggest growth.
However, results still came in below analyst expectations of 3.6% same store growth, causing the company's shares to fall 0.26%, trading at $80.93 per share as of Wednesday morning.
Comparable sales, or those of restaurants operating at least 13 months, in Asia/Pacific, Middle East and Africa increased 4.3%, compared to a 3.8% same-store sales hike in the year-ago period, led mainly by China.
The giant fast food restaurant chain said the sales increase was driven by breakfast and lunch value items, and convenience initiatives, like drive-thru, delivery and extended operating hours.
In Europe, comparable sales rose 2.3%, compared to a 5.7% hike in May 2010, thanks in large part to strong performances in France, Russia, and the U.K., offset by weaker sales in Germany.
Premium menu items like McWraps and the 1955 burger helped sales, as did limited-time options like the U.K.'s Great Tastes of America campaign, McDonald's said.
Meanwhile, U.S. comparable sales jumped 2.4% for the month, compared to a 3.4% rise in the previous year. The company said the national launch of its Frozen Strawberry Lemonade, as well as the Fruit & Maple Oatmeal, strongly contributed to U.S. sales.
"McDonald's ability to connect with consumers and deliver the menu choices, everyday affordability and experience that is in tune with today's lifestyles has been the cornerstone of our ongoing sales momentum," said CEO Jim Skinner.
Systemwide sales, which include sales at franchisee-operated locations, increased 12%, or 4.7%, in constant currencies.
McDonald's, which has over 32,000 locations in 117 countries, said it expects currency translation to positively affect its second quarter earnings by between $0.09 and $0.10 per share, as a result of stronger foreign currencies.
The Oak Brook, Illinois-based company plans to release its second quarter results before market opens on July 22.
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