McDonald's sales figure climbed 3.1% in May
McDonald's overseas business remained strong in May as the company reported a 4.3 % increase in revenue at restaurants open at least 13 months for Asia/Pacific, Middle East and Africa.Updated: Jun 08, 2011 19:32 IST
McDonald's overseas business remained strong in May as the company reported a 4.3 % increase in revenue at restaurants open at least 13 months for Asia/Pacific, Middle East and Africa.
McDonald's said customers in these regions were drawn to its affordable breakfast and lunch choices as well as the convenience of its drive-thru locations, delivery and extended operating hours.
The metric was up 2.4 % in the US and 2.3 % in Europe. The results were below the 3.4 % gain in the U.S. and 5.7 % in Europe in the same month last year, respectively.
The strongest performers in Europe included France, Russia and the United Kingdom. McDonald's said sales of McWraps, the 1955 burger and its UK's Great Tastes of America limited-time promotion sold well.
Generally, consumers headed to McDonald's for its fruit and maple oatmeal and drinks like frozen strawberry lemonade in May, pushing its revenue at restaurants open at least 13 months up 3.1 %.
But the results were sluggish in the U.S. and weaker than May 2010. Shares of the world's biggest hamburger chain fell $1.49 to $79.65 in premarket trading on Wednesday.
Revenue at restaurants open at least 13 months is a key gauge of a restaurant chain's health because it excludes results from locations that were recently opened or closed.
McDonald's posted a 4.8 % increase in the key revenue metric a year ago. But this May's performance topped the 2.7 % rise that analysts polled by FactSet expected.
McDonald's Corp. said that its affordable menu options, which have been key to its success during the recession and economy's slow recovery, helped drive sales higher in May. A push to remodel restaurants has also proved beneficial.
For the year to date, revenue at restaurants open at least 13 months gained 4.4 %. The figure rose 5.2 % in Europe and 4.1 % in Asia/Pacific, Middle East and Africa. The U.S. reported a 3.1 % gain.
McDonald's has more than 32,000 restaurants in 117 countries.
First Published: Jun 08, 2011 19:28 IST