Fast-Food giant McDonald’s reported fiscal second quarter and June same-store sales results this morning:
- Reported a decline of 2.0% in systemwide sales for June, while comparable sales were up 2.6% vs the year-ago period. Excluding the effects of currency translation, total systemwide sales increased 4.0% during the month. While the 2.6% global comparable sales increase was below consensus expectations for a gain of 4.5%, the company has now posted 74 consecutive months of positive system-wide comparable sales growth. For the month, comparable sales results by segment were: US +1.8%, Europe +4.7%, and APMEA +0.3% (Asia Pacific, Middle East, & Africa).
- For the 2nd quarter, total systemwide sales were down 1% and revenue was down 7% from the 2nd quarter of 2008. On a constant currency basis, sales were up 7% and revenue was up 4%. Net income was $1.094 Billion, an 8.1% decrease from a year ago, while diluted EPS was down 5.8% to $0.98 per share. Global same-store sales were up 4.8% in the quarter, with the US +3.5%, Europe +6.9%, and APMEA +4.4%. While currency translation helped to boost results over the past few years, the company said earlier in the year it expected both second and third quarter profit to take an 11-cent-per-share hit from exchange rates. The company said the national launch of the McCafe premium coffee line-up added to sales and helped boost market share in the U.S. Commenting on the results, CEO Jim Skinner said “We’re driving results by staying focused on our global business strategy, the Plan to Win. In today’s economic environment, our performance speaks to the strength of our plan and McDonald’s ongoing commitment to our customers around the world.”
