McDonald's February Global Comps Edge Down 0.3%

(RTTNews) - Fast food giant McDonald's Corp. (MCD) announced Monday that sales at established stores edged down 0.3 percent in February on weak U.S and Asia sales, while sales were slightly positive in Europe.

"McDonald's global growth priorities - optimizing our menu, modernizing the customer experience and broadening accessibility to Brand McDonald's - are the foundation of our customer-centric approach to building our business for the long term," President and CEO Don Thompson said in a statement.

The Oak Brook, Illinois-based hamburger chain's February global comparable sales drop of 0.3 percent was on top of a 1.5 percent decline in the same month a year ago. The comparable sales measure excludes the impact of currency translation.

Comparable sales represent sales at all restaurants, whether operated by the company or by franchisees, in operation at least thirteen months including those temporarily closed.

The world's largest restaurant chain said system-wide sales or sales at all restaurants (whether operated by the company or by its franchisees) edged down 0.6 percent or increased 2.2 percent in constant currencies, for its restaurants worldwide.

Geographically, February comparable sales in the U.S. declined 1.4 percent, compared to prior year's 3.3 percent drop. US system-wide sales also edged down 0.5 percent for the month.

Sales in the US region were hurt as customers preferred to say home in the severe winter weather. However, the company intends to to regain momentum with relevant menu introductions and value offerings as well as improved restaurant operations and customer service.

In Europe, comparable sales increased 0.6 percent, compared to a 0.5 percent drop last year on the strength of its local menu options, extended hours and expanded convenience through breakfast. The positive results in France and strong performance in the U.K. were nearly offset by the continued weakness in Germany.

Europe's system-wide sales for the month also grew 4.8 percent from last year on a reported basis, and was up only 3.4 percent in constant currencies.

Comparable sales in Asia/Pacific, Middle East and Africa or APMEA, region declined 2.6 percent, compared to prior year's drop of 1.6 percent. The results were driven by negative results in Australia, weakness in Japan as well as a shift in timing of Chinese New Year.

System-wide sales in the region also decreased 4.7 percent in the region, but rose 1.8 percent in constant currencies.

"We are diligently focused on strengthening our performance, however our relatively flat year-to-date global comparable sales will pressure margins in the first quarter. Looking ahead, we believe that we are taking the right actions to more clearly align with our customers' needs and build momentum to drive long-term profitable growth," CFO Pete Bensen stated.

MCD closed Friday's regular trading session at $95.50, down $0.24 on a volume of 3.72 million shares.