OAK BROOK, Ill.,
Dec. 8, 2014
/PRNewswire/ -- McDonald's Corporation today announced that global
comparable sales decreased 2.2% in November. Performance by
segment was as follows:
- U.S. down 4.6%
- Europe
down 2.0%
- Asia/Pacific, Middle
East and Africa (APMEA)
down 4.0%
"Today's consumers increasingly demand more choice, convenience
and value in their dining-out experience," said McDonald's
President and Chief Executive Officer Don
Thompson. "We are working to bring the McDonald's
Experience of the Future to life for our customers to better
deliver against these evolving expectations. Each of our
geographic segments is focused on regaining business momentum by
prioritizing initiatives to improve comparable sales performance in
the near-term, while developing innovations to deliver sustained
profitable growth through McDonald's Experience of the Future."
In November, U.S. comparable sales decreased 4.6% amid strong
competitive activity. To restore momentum, McDonald's U.S. is
diligently working to enhance its marketing, simplify the menu, and
implement a more locally-driven organizational structure to
increase relevance with consumers.
Europe's comparable sales
decreased 2.0% in November as positive performance in the U.K. was
more than offset by very weak results in Russia and negative results in France and Germany. While the operating
environment remains challenging across most of the segment,
McDonald's Europe remains focused
on providing customers with locally-relevant value and premium menu
options, including differentiated beverage and breakfast
offerings.
In November, APMEA's comparable sales decreased 4.0%, reflecting
the ongoing impact of the supplier issue on performance in
Japan and China, partly offset by positive performance
in Australia. Brand recovery campaigns continue in the
markets affected by the supplier issue. To drive customer
traffic and improve performance, markets across APMEA are
leveraging compelling menu options, value platforms and the
segment's enhanced convenience initiatives.
Strong comparable sales in McDonald's Other Countries &
Corporate segment, which includes Latin
America and Canada,
contributed positively to the Company's global comparable sales
performance for the month.
The following items are expected to negatively impact fourth
quarter results:
- Negative top-line performance is expected to significantly
pressure company-operated and franchised margins
- $0.07 to $0.10 per share due to
the ongoing impact of the supplier issue in China, as previously communicated
- $0.07 to $0.09 per share due to
strengthening of the U.S. dollar against nearly all foreign
currencies
Systemwide sales for the month decreased 6.0%, or were
relatively flat in constant currencies.
Percent
Increase/(Decrease)
|
|
Comparable
Sales
|
Systemwide
Sales
|
|
|
|
As
|
Constant
|
Month ended November
30,
|
|
2014
|
|
2013
|
|
Reported
|
Currency
|
McDonald's
Corporation
|
|
(2.2)
|
|
0.5
|
|
(6.0)
|
|
0.1
|
|
Major
Segments:
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
(4.6)
|
|
(0.8)
|
|
(3.7)
|
|
(3.7)
|
|
Europe
|
|
(2.0)
|
|
1.9
|
|
(8.1)
|
|
0.5
|
|
APMEA
|
|
(4.0)
|
|
(2.3)
|
|
(6.3)
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
|
Year-To-Date November
30,
|
|
|
|
|
|
|
|
|
|
McDonald's
Corporation
|
|
(1.1)
|
|
0.4
|
|
(1.1)
|
|
1.3
|
|
Major
Segments:
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
(2.3)
|
|
0.1
|
|
(1.4)
|
|
(1.4)
|
|
Europe
|
|
(0.6)
|
|
0.0
|
|
2.3
|
|
2.1
|
|
APMEA
|
|
(3.0)
|
|
(1.9)
|
|
(2.8)
|
|
1.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
Typically, pricing has a greater impact on average check than
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 November 2014,
this calendar shift/trading day adjustment consisted of one less
Friday and one more Sunday compared with November 2013. The resulting adjustment varied by
area of the world, ranging from approximately -1.3% to 0.8%. 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.
Upcoming Communications
Don Thompson, President and Chief
Executive Officer, and Mike Andres,
President of McDonald's USA, will
participate in an investor discussion from 10:00 a.m. - 12:00 p.m. (Central Time) on
December 10, 2014. This discussion
will be webcast live and available for replay for a limited time
thereafter at www.investor.mcdonalds.com.
McDonald's tentatively plans to release fourth quarter results
before the market opens on January 23,
2015 and will host an investor webcast. This webcast
will be broadcast live and available for replay for a limited time
thereafter at www.investor.mcdonalds.com.
About McDonald's
McDonald's is the world's leading global foodservice retailer
with over 35,000 locations serving approximately 70 million
customers in over 100 countries each day. More than 80% of
McDonald's restaurants worldwide are owned and operated by
independent local business men and women.
Forward-Looking Statements
This release contains certain forward-looking statements, which
reflect management's expectations regarding future events and
operating performance and speak only as of the date hereof. These
forward-looking statements involve a number of risks and
uncertainties. The factors that could cause actual results to
differ materially from our expectations are detailed in the
Company's filings with the Securities and Exchange Commission, such
as its annual and quarterly reports and current reports on Form
8-K.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mcdonalds-reports-global-comparable-sales-for-november-300005710.html
SOURCE McDonald's Corporation