China boost for McDonald’s Corporation
A strong performance in China, partly offset by continued challenges in South Korea, helped build first-quarter momentum for McDonald’s Corporation.
President/CEO Steve Easterbrook says the restaurant group has had 11 consecutive quarters of positive comparable sales and a fifth consecutive quarter of positive guest counts.
Highlights for the first quarter, to the end of March, included a 5.5 per cent rise in global comparable sales and 0.8 per cent in global comparable guest counts.
A strategic refranchising initiative resulted in consolidated revenues dropping 9 per cent (15 per cent in constant currencies).
Systemwide sales increased 7 per cent in constant currencies, while consolidated operating income increased 5 per cent (flat in constant currencies) because of growth in franchised margin dollars, offset by the impact of the refranchising initiative
Comparable sales for the international lead segment increased 7.8 per cent for the quarter, reflecting positive results across all markets. The segment’s operating income grew 21 per cent (9 per cent in constant currencies), fuelled by sales-driven improvements in franchised margin dollars.