McDonald's Global Comparable Sales Up 5.5% in October

McDonald's Corporation (NYSE: MCD) today announced global comparable sales growth of 5.5% in October. Performance by segment was as follows:

• U.S. up 5.2%
• Europe up 4.8%
• Asia/Pacific, Middle East and Africa up 6.1%

"McDonald's Plan to Win continues to deliver strong global comparable sales increases," said McDonald's Chief Executive Officer Jim Skinner.  "The ongoing strength of our results reflects the power of our customer-focused plan, supported by actions that enhance the relevance of the Brand."

In the U.S., comparable sales rose 5.2% as customers continue to visit McDonald's for classic core favorites, relevant new products and compelling value offered in our convenient restaurants.  The excitement of the Monopoly game promotion and the popularity of featured products, including the Big Mac, Chicken McNuggets, Fruit & Maple Oatmeal and McCafe beverages, were key drivers for the month.

Europe posted a 4.8% increase in comparable sales for the month driven by performance in France, Russia and the U.K.  The segment continued to benefit from locally-relevant menu choices, promotional food events, everyday value options and reimaged restaurants that are more convenient and accessible.

Comparable sales in Asia/Pacific, Middle East and Africa increased 6.1% for the month led by Australia, China and Japan. APMEA's results were driven by convenience, unique daypart value platforms, and a balance of core and local offerings.

Systemwide sales for the month increased 7.7%, or 7.6% in constant currencies.

    

    

    

        Percent Increase                   Comparable       Systemwide Sales

                                              Sales             As  Constant

        Month ended October 31,           2011    2010    Reported  Currency

        

        McDonald's Corporation             5.5     6.5         7.7       7.6

        Major Segments: 

          U.S.                             5.2     5.6         6.0       6.0

          Europe                           4.8     5.8         6.2       7.6

          APMEA*                           6.1     5.3        13.8      10.4 

        

    

        Year-To-Date October 31,

        

        McDonald's Corporation             5.0     5.2        11.1       6.7

        Major Segments:   

          U.S.                             4.1     3.8         4.8       4.8

          Europe                           5.4     4.9        14.9       8.0

          APMEA*                           4.1     6.1        15.8       6.5

        

            * Asia/Pacific, Middle East and Africa

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. 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 October 2011, this calendar shift/trading day adjustment consisted of one less Friday and one more Monday compared with October 2010. The resulting adjustment varied by area of the world, ranging from approximately -1.6% to -0.7%.  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.

Logos, product and company names mentioned are the property of their respective owners.

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