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Morning Briefing for pub, restaurant and food wervice operators

Tue 26th Jul 2016 - McDonald’s reports 3.1% increase in global like-for-likes
McDonald’s reports 3.1% increase in global like-for-likes: McDonald’s has reported a 3.1% increase in global like-for-like sales for its second quarter ended 30 June 2016. Chief executive Steve Easterbrook said: “At McDonald’s, we are focused on meeting our customers’ needs for high quality, affordable food and beverage choices. Our second quarter performance, which marks our fourth consecutive quarter of positive comparable sales across all business segments, provides a clear indication that customers are responding to the steps we’re taking to deliver the menu and value options they want at the convenience of McDonald’s. We’re making steady progress on transforming our business to satisfy the needs of our customers around the world, despite a challenging environment in several key markets.” In the US, second quarter comparable sales increased 1.8%, with continued contributions from all-day breakfast and the introduction of McPick 2 despite softening industry growth during the quarter. Operating income for the quarter rose 10%, reflecting higher sales-driven franchised margins and higher gains from restaurant refranchising. Looking ahead, McDonald’s is beginning the second half of the year focused on adding more breakfast sandwich favourites – biscuits, McMuffins and McGriddles – to the all-day breakfast menu. The company said this platform extension would be complemented by initiatives around core menu enhancements and restaurant operations designed to deliver an outstanding customer experience. Comparable sales for the “international lead” segment increased 2.6% for the quarter, led by positive performance in the UK, Canada and Australia, and slightly positive results in Germany. In the high growth segment, second quarter comparable sales increased 1.6%, led by positive comparable sales performance in China and Russia, along with solid performance across various other markets. The segment’s operating income rose 25% (32% in constant currencies) fuelled by improved results in China. In the “foundational markets”, second quarter comparable sales rose 7.7%, reflecting very strong performance in Japan and many other markets. Easterbrook added: “Enhancing the customer experience, running great restaurants and strengthening our competitive position to become a modern progressive burger company takes discipline and dedication. I am confident in our system’s ability to stay the course and execute our turnaround plan to achieve our goals. We are on the right path to changing the way customers think about McDonald’s by getting closer to the communities we serve and harnessing one of our system’s key competitive strengths – the entrepreneurial spirit of our dedicated franchisees – as we lay the foundation for future growth.”



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