McDonald's Reports Marginal Sales Increase in July

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Thanks to a 1.6% improvement in domestic July sales compared to 2012, McDonald's was able to offset sales declines in both Europe and the Asia/Pacific, Middle East, and Africa (APMEA) regions, ending July with a combined 0.7% rise in comparable global sales results, the company announced today.

In Europe, McDonald's did see strength in both the Russian and U.K. markets, however, those gains were more than offset by "negative performance in Germany, France and other Southern Europe markets," according to the company's press release. Combined, Europe comparable sales results for July 2013 declined 1.9%.

The APMEA market experienced results similar to Europe's, in large part due to negative comparable sales for July in Japan, China, and Australia, McDonald's said. For the APMEA region as a whole, July sales  dropped 1.9% compared to 2012.

Commenting on July 2013's results, McDonald's CEO Don Thompson said the "modest" global comparable sales growth was "relatively in-line with our expectations." 

In the U.S., the company said, "everyday value offerings," breakfast, and staples such as the Big Mac drove up results, along with the 21st edition of Monopoly at McDonald's. With people being careful about their spending, the chain has aggressively promoted its Dollar Menu and other deals to bring in customers. Analysts have expressed concern the strategy could eat into profit margins, but executives say the sacrifice is necessary to keep customers loyal and grow over the long term.

Comparable sales represent sales at all restaurants, operated by the company and franchisees, in operation at least 13 months, including those temporarily closed. Comparable sales exclude the impact of currency translation. July 2013 had one less Sunday and one more Wednesday compared with July 2012.

-- Material from The Associated Press was used in this report.


The article McDonald's Reports Marginal Sales Increase in July originally appeared on

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