McDonald's Rise in Sales

The McDonald’s Corporation said Monday that sales at stores open at least a year climbed 4.3 percent in July as the nation’s biggest hamburger chain benefited from budget-conscious consumers.
The company, based in Oak Brook, said that sales at American stores open at least a year climbed 2.6 percent because of new products, including McCafé espresso-based coffee.
European sales surged 7.2 percent, helped by growth in France and Britain. Sales for Asia Pacific, the Middle East and Africa rose 2.1 percent, as strength in Australia helped offset weakness in China. Longer operating hours also increased sales.

McDonald’s sales at restaurants open at a year, also called same-store sales, are a key indicator of performance because they measure growth at existing restaurants rather than newly opened ones.

Total sales declined 0.3 percent because of currency translation.
Many companies that sell their products abroad convert sales from foreign currencies back to dollars when reporting financial results. When the dollar is stronger than those currencies, it results in fewer dollars in revenue.

McDonald’s results have benefited from consumers trading down to cheaper meal options in the recession, but its second-quarter profit declined 8 percent because of the stronger dollar and a year-ago gain. Results a year ago benefited from a better economy and stimulus checks, the company said.

McDonald’s, which has at least 32,000 restaurants worldwide, plans to release August sales on Sept. 9.

Source :- NYTimes


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