May 13, 2013

Bird Flu in China hurts McDonald's comparable sales results

McDonald's Corporation reports comparable sales in April 0.6% below the same month in 2012 with a 2.9% fall in Asia-Pacific, Middle East and Africa (APMEA), which the company attributed to the impact of bird flu in China.

The decline of APMEA's comparable sales reflects the impact of bird flu, primarily in China, and softer results in Japan and Australia. Across the region, McDonald's is striving to improve performance by emphasising unique value platforms, accelerating growth at breakfast and enhancing customer service and convenience.

McDonald's President and Chief Executive Officer, Don Thompson, said: "As we begin the second quarter against the backdrop of a persistently challenging macro environment, the McDonald's system is aligned around executing our long-term strategies to drive sustained, profitable growth."

In the US, comparable sales increased 0.7% in April as McDonald's remains a relevant and affordable choice for consumers. The national introduction of Premium McWraps, compelling value options and the on-going popularity of McDonald's breakfast contributed to the month's results. Looking ahead, US initiatives will feature a balanced combination of value, menu innovation and service.

In Europe, April comparable sales decreased 2.4%, with positive performance in the UK and Russia more than offset by Germany, France and other markets. McDonald's markets across Europe continue to pursue customer-focused strategies around menu choice, everyday affordability and enhancing brand presence by adding new restaurants and increasing operating hours.

System-wide sales for the month decreased 0.4% and increased 1.9% in constant currencies.

For the year to date, comparable sales were down in all regions - global (-0.9%), US (-0.7%), Europe (-1.5%) and APMEA (-3.2%). All had recorded increases in 2012.