McDonald’s Sales Slow

McDonald’s Corp. (Oak Brook, Ill.) reported June’s global same-store sales rose 4.8 percent, with U.S. sales up 3.5 percent, Europe up 6.9 percent and Asia/Pacific, Middle East and Africa up 4.4 percent. As recently as April, the fast-food chain reported same-store sales increased nearly 7 percent.

In a conference call with investors, chief operating officer Ralph Alvarez said that while same-store sales did slow in June, they were still positive and “our U.S. July comp sales are trending similar to or better than they did in June.”

According to research firm The NPD Group, total traffic across the restaurant sector was down 2.6 percent for the three months ended in May – the sharpest decline since 1981. Traffic at fast-food establishments was down 2 percent.

At McDonald’s, even as customer traffic and operating income rose, the company reported second-quarter revenue, including results from franchised outlets, fell to $5.65 billion from $6.08 billion, affected by currency fluctuations. 

“As consumers find themselves more cash-strapped and time-challenged, they continue to count on McDonald's for value, convenience and variety across our menu,” says ceo Jim Skinner. “I am pleased with McDonald's results and remain confident in our outlook for the year. As we begin the third quarter, we expect to report July consolidated comparable sales similar to or better than June.”