McDonald's Sizzles With 6.5% Comparable Sales Growth in October
McDonald's (MCD), the world's largest hamburger chain, said global comparable sales grew 6.5% in October on strong performance of some local and value-menu items, as well as new offerings and store renovations. "We are keeping the McDonald's brand in demand around the world by serving great-tasting, high-quality food at an outstanding value," CEO Jim Skinner said in a statement.
Comparable sales, which measure sales at restaurants open at least 13 months, are a good indicator for performance because the measure gauges how a company is faring at existing locations, rather than growth from opening up new ones. Last year, comparable sales grew 3.3% for the same period.
In constant currency, systemwide sales, which include franchise sales and not just McDonald's-operated restaurants, grew 7.4% in October, compared to 7.8% last October.
Menu Variety and Renovations Help
In the U.S., sales were up 5.6%, compared to a 0.1% decline last October. Key boosters were the Monopoly game, as well as popular items such as Chicken McNuggets, McGriddles, Big Macs and McCafe beverages. In constant currency, systemwide sales grew 6.3%, as much as last year.
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In Europe, sales grew by 5.8% due to strong performance in France, the U.K. and Russia. The leading factors included menu variety and choice, and restaurant renovations. In constant currency, systemwide sales growth in Europe was 3.4%, much less than last year's 8.3%.
In Asia/Pacific, Middle East and Africa, sales increased by 5.3% fueled by Japan, China and Australia. Value menus, as well as local offerings helped propel growth. In constant currency, systemwide sales growth surged to 13.4%, compared to 5.7% growth in October 2009.
Year-to-date, McDonald's said comparable sales grew 5.2% globally, with 3.8% growth in the U.S., a 4.9% increase in Europe and a 6.1% surge in Asia/Pacific, Middle East and Africa.
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