McDonald's posts over 5% same store sales growth in July
McDonald's Corp (NYSE:MCD) reported overall same-store sales growth of 5.1% in July, but shares still fell due to weaker than expected growth in the US.
Comparable sales, or sales at restaurants in operation for at least 13 months, rose 5.1%. The company's July guidance for global comparable sales was between 4% and 5%. Analysts expected an increase of 4.7%.
In the U.S., July sales rose 4.4%, missing analyst estimates of 4.9% growth. The company said sales were fuelled by its smoothies, Chicken McNuggets and its breakfast menu.
The fast food retailer, which has been revamping its image over the years, said same store sales in Europe were up 5.3%, led by strength in the United Kingdom, Russia and Germany as people gravitated to the company's beef and chicken products as well as its breakfast.
"We're creating a unique McDonald's experience that is welcoming our customers into modern restaurants with convenient hours and locations and offering more choice in food and drink options than ever before," said McDonald's Chief Executive Jim Skinner.
Comparable sales in Asia-Pacific, Middle East and Africa rose 4% led by performance in China, which was partially offset by Japan.
The company said results stem from conveniences such as delivery and drive-thru, and "locally-relevant menu items".
Systemwide sales for the month increased 14.0%, or 7.1%, in constant currencies. Same-store sales are considered a key measure of a company's growth because they exclude store openings and closings.
The Oak Brook, Illinois-based company's shares fell 1.72% to $83.62 Monday on the New York Stock Exchange.
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