McDonald's January comparable sales fell 1.9 percent, due to weakness in the
Europe and Asia, the company said Friday.
The Oak Brook-based burger giant warned during its fourth-quarter
earnings release that sales at restaurants open more than one year would be
down. But analysts polled by Consensus Metrix had expected a decline of 1.1
percent.
Shares rose nearly 1 percent in morning trading, to $95.38.
Of greatest concern to Wall Street, same store sales in Europe declined
to 2.1 percent. The company cited particular weakness in Germany and France
despite solid growth in the U.K and Russia. Europe is the chain's largest
market.
Comparable sales fell 9.5 percent in McDonald's Asia Pacific Middle East
and Africa division, for which the chain cited weakness in Japan, and declines
in China, attributable to a calendar shift in the Chinese New Year, and the
ongoing fallout from a poultry crisis.
In the U.S., comparable sales rose 0.9 percent. McDonald's cited
popularity of its core menu and moving the grilled onion and cheddar burger
onto the Dollar Menu.
Total sales rose in January 0.3 percent, or 0.7 percent adjusted for the
impact of currency.
While McDonald's expects sales to improve later this year, the worst
isn't over. The company said it expects a 3 percent hit to February sales as a
result of a shorter month in 2013.
"While January's results reflect today's challenging environment and
difficult prior year comparisons, I am confident that our unwavering
commitment to delivering an exceptional restaurant experience will enhance our
brand's relevance and drive long-term results," McDonald's CEO Don Thompson
said in a statement.
In a Friday research note, Janney analyst David Tarantino wrote that
McDonald's performance in the U.S. was ahead of expectations and the broader
quick-service restaurant industry.
Though he expects comparable sales to be down through March, "we remain
optimistic that planned initiatives can support better operating momentum
after the first quarter," he said.
eyork@tribune.com -- Twitter: @emilyyork
Reuters contributed to this report.
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