March 10, 2013

McDonald’s reports second consequtive month of global comparable sales decline

Fast food chain McDonald's has reported a decline in comparable monthly sales for the second straight month in February 2013.

By Raj Tulsiani

Fast food chain McDonald’s has reported a decline in comparable monthly sales for the second straight month in February 2013.

Sales declined 1.5% for month following the 1.9% drop seen in January 2013; the decline was attributed to the negative calendar shift due to 2012 being a leap year.

"Excluding this negative calendar shift of 3.2 percentage points, global comparable sales were up 1.7%," said the company in a statement.

In the US, comparable sales were down 3.3%, while excluding the negative calendar shift the figures remained flat compared to 2012 performance.

European comparable sales decreased 0.5% while those in Asia-Pacific, Middle East and Africa were down 1.6%.

The company added that its priority in Europe remains building guest traffic by focusing on unique premium menu offerings, compelling value and the expansion of the breakfast and restaurant operating hours.

Excluding the negative calendar shift due to leap year, comparable sales jumped 2.7% in the region led by positive performance in the UK and Russia.

The recent addition of the Grilled Onion Cheddar burger and the Hot ‘n Spicy McChicken to McDonald’s value line-up, the popularity of classic core favorites including Filet-O-Fish, and the limited-time Fish McBites offer contibuted for strong results, company said.

McDonald’s president and chief executive officer Don Thompson said that the February’s results reflect difficult prior year comparisons; however, the company remains confident in the fundamental strength of its business.

"We have the operating experience to manage through the current challenging environment and the right strategies in place to grow the business for the long term," Thompson concluded.