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Fri 22nd Apr 2016 - McDonald’s reports 6.2% increase in global like-for-likes
McDonald’s reports 6.2% increase in global like-for-likes: McDonald’s has reported a 6.2% increase in like-for-like sales for its first quarter ended 31 March 2016. Chief executive Steve Easterbrook said: “McDonald’s brand and business is built on offering delicious food and beverages through unmatched convenience and compelling value. The turnaround plan we announced last year is grounded in enhancing these critical customer-driven elements, and I’m pleased to report that our turnaround is taking hold. The ongoing investments we’re making in running great restaurants and delivering what matters most to our customers are beginning to yield sustained positive results. For the quarter, we generated higher sales, revenues and operating income in constant currencies across all business segments.” In the US, first quarter comparable sales increased 5.4%, fuelled by the ongoing popularity of all-day breakfast and the introduction of McPick 2 – a branded national value platform. Operating income for the quarter rose 15%, reflecting higher sales-driven franchised margins, comparison against the prior year’s strategic charges, and higher gains from restaurant refranchising. Looking ahead, the US business remains focused on finalising its long-term value platform, investing in core menu enhancements and simplifying restaurant operations to deliver an outstanding customer experience. Comparable sales for the "International Lead" segment increased 5.2% for the quarter, led by strong performance in the UK, Australia and Canada as strong execution of core menu, compelling value and convenience strategies continued to resonate with consumers. First quarter operating income increased 12% (18% in constant currencies), driven by higher franchised margin dollars. The segment delivered strong results despite ongoing economic and competitive headwinds in France and Germany. In the high growth segment, first quarter comparable sales increased 3.6%, led by strong comparable sales performance in China and positive performance across various other markets, including Russia. In the "Foundational markets", first quarter comparable sales rose 11%, primarily due to sales recovery in Japan. Quarterly operating income increases for both segments reflected comparison against the prior year’s strategic charges and recovery from the prior year’s impact of the 2014 supplier issue – both of which negatively impacted China and Japan’s results in first quarter 2015. Easterbrook added: "Last week, McDonald’s came together for our biennial worldwide convention to galvanise around the actions we’re taking to be recognised by our customers as a modern and progressive burger company. I came away energised by the talented franchisees, suppliers and employees from around the world who are working to strengthen the fundamentals of running great restaurants to build strong and sustainable momentum. While there is still work to be done, we are on the right path to make even greater progress. I am confident that our continued efforts will deliver meaningful long-term value for all stakeholders into the future.”


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