McDonald's Sales Figure Bounces Back in August

Mcdonald's restaurantNEW YORK (AP) - McDonald's (MCD) said a key sales figure climbed 3.7 percent in August, as the fast-food chain emphasized the value of its menu offerings amid the challenging global economy.

The world's biggest hamburger chain's strongest performance came from the region encompassing Asia, the Middle East and Africa, with revenue at stores open at least 13 months up 5.7 percent.

The Oak Brook, Ill.-based company said Tuesday that strong results in Australia and China fueled the performance, along with a shift in the timing of Ramadan, the monthlong observance during which Muslims fast during daylight hours. This year, Ramadan ran from late July to mid-August. Last year, Ramadan fell entirely in August.

In the U.S., the company said its breakfast menu and value items pushed up sales by 3 percent. Last month, the figure had dipped 0.1 percent after the company said its promotions failed to drive growth.

In Europe, which is McDonald's biggest market and accounts for 40 percent of its business, the figure rose 3.1 percent on strength in the U.K., France and Russia. The company said its sponsorship of the London Olympics helped lift results. Another strong contributor was its Coke Glass promotion, in which customers got a free glass and wristband when they bought an extra value meal or premium salad.

The overall results for the month were offset by weakness in Japan, Germany and parts of southern Europe that have been hard hit by the economy.

Sales at all the company's restaurants rose 1.2 percent for the month. McDonald's, which has more than 33,500 locations around the world, is often seen as a bellwether for the industry.

The increase in August follows a disappointing showing in July, when the figure came in flat. That was the worst showing in more than nine years; the last time the figure dipped for McDonald's was in April 2003.

After years of outperforming its rivals, analysts say McDonald's could be heading into a period of slower growth. The company is also facing increasing competition, with Burger King Worldwide Inc. (BKW) and The Wendy's Co. (WEN) working to revive their brands.

Revenue in restaurants open at least 13 months is a key measure of a restaurant chain's performance because it strips out the impact of recently opened or closed stores. The figure is a snapshot of money spent on food at both company-owned and franchised restaurants. They do not reflect corporate revenue.

Shares of McDonald's Corp. rose 70 cents at $91.30 in premarket trading Tuesday.





Increase your money and finance knowledge from home

Socially Responsible Investing

Invest in companies with a conscience.

View Course »

What is Short Selling?

Make a profit when stocks prices fall.

View Course »

Add a Comment

*0 / 3000 Character Maximum

9 Comments

Filter by:
nybrotha309

I dont know how there stocks are up so high, all they hire is these young kids who dont care what they serve or how they serve it! Then they're to busy on their their cell phones to take your order! Mcdonalds is going down hill!! Every time I order from them I have to hand them back my food to make it hot and fresh! I pay for it so I should get it fresh!! I can only imagine how much food they waste a day from screwing up on orders or trying to serve that old cold food on people!

October 20 2012 at 1:17 AM Report abuse rate up rate down Reply
Fed Up

And I would have thought it was the American Deep South. The hillbillies really like that crap.

September 12 2012 at 11:33 PM Report abuse -1 rate up rate down Reply
antipodal2u

Ugh whatsamatter with you foriegners? Didnt you see 'super size it'?

September 12 2012 at 7:20 PM Report abuse rate up rate down Reply
drakkusshadows

This proves that uneducated people love McDonald's. The sad part is the ignorant allow their children to eat that nasty stuff. The children don't know better. It's up the the parents to make good decisions for their kids. I hope this becomes a case for social workers soon.

September 12 2012 at 4:52 PM Report abuse -1 rate up rate down Reply
1 reply to drakkusshadows's comment
patty7513

SHUT THE **** UP STUPID ASS CAUSE YOUR AN IGNORANT BITCH FACE!!!!

September 12 2012 at 5:20 PM Report abuse -1 rate up rate down Reply
1 reply to patty7513's comment
wackawacka1

That's a little harsh!!!!!!!!!!!

September 12 2012 at 8:16 PM Report abuse +2 rate up rate down
arenadood

I will remain a loyal customer as long as they keep the Breakfast Burritos and the Egg McMuffins.

September 12 2012 at 4:44 PM Report abuse +1 rate up rate down Reply
1 reply to arenadood's comment
Dwan

I agree. They're the only things i would purchase from there along with the fish sandwich.

September 12 2012 at 6:51 PM Report abuse +1 rate up rate down Reply
1 reply to Dwan's comment
wackawacka1

With extra sauce.

September 12 2012 at 8:17 PM Report abuse +2 rate up rate down