McDonald's reports April global sales up, Europe still weak

by Staff
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OAK BROOK, ILL. — McDonald's Corporation announced today that global systemwide sales for McDonald's restaurants increased 6.7% in April, or 3.9% in constant currencies. Comparable sales for McDonald's restaurants worldwide increased 2.8%.

U.S. comparable sales increased 4.7%, company officials said.

McDonald's Chief Executive Officer Jim Skinner commented, "Our strategic focus on our customers and restaurants continues to drive our business with April marking our 24th consecutive month of global comparable sales increases.

"Building on its strong momentum, our U.S. business posted a 4.7% comparable sales gain in April as a result of combined operations and marketing initiatives that continue to enhance our consumer relevance," Mr. Skinner said. "(Tuesday), McDonald's U.S.A. will launch national advertising of our new Fruit & Walnut Premium Salad."

In Europe, April comparable sales were down 0.7% against last year's 5.0% increase, the company said. April 2005 results were hurt by the shift of Easter and related school holidays from April in 2004 to March in 2005.

"We also continue to face a challenging operating environment in Germany and the United Kingdom," Mr. Skinner said. "Despite this, I'm confident we are on the right track in Europe by delivering more relevant marketing, additional menu variety and everyday branded affordability."

Comparable sales for Asia/Pacific, Middle East and Africa were up 1.6% in April, driven by positive performance in Australia, Japan and Taiwan, partly offset by weakness in China.

"Globally, we will continue to build on the momentum of our Plan to Win," Mr. Skinner said. "We know we are only as good as our customers' last visit, so we are strengthening our efforts to further enhance their overall experience through operations excellence and leadership marketing."

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