McDonald's Delivers Global Comparable Sales Increase of 6.5% for October

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Nov 08, 2010, 07:58 ET

OAK BROOK, Ill., Nov. 8, 2010 /PRNewswire-FirstCall/ -- McDonald's Corporation today announced global comparable sales growth of 6.5% in October. Performance by segment was as follows:

U.S. up 5.6%
Europe up 5.8%
Asia/Pacific, Middle East and Africa up 5.3%

"We are keeping the McDonald's brand in demand around the world by serving great-tasting, high-quality food at an outstanding value," said Chief Executive Officer Jim Skinner. "Moving forward, our customer focus, menu innovation, and the ongoing modernization of our convenient restaurants will continue to deliver the unique McDonald's experience that keeps customers coming back."

U.S. comparable sales increased 5.6% for the month, reflecting the combined power of McDonald's menu, marketing strategies and restaurant operations. The excitement of the Monopoly game promotion and the popularity of the featured core products including Chicken McNuggets, McGriddles, Big Mac and McCafe beverages were key drivers for the month.

In Europe, October comparable sales rose 5.8% due to strong performance in France, the U.K. and Russia. Europe's focus on elevating the customer experience with a blend of menu variety and choice, along with updated restaurants that are more convenient and accessible, contributed to the segment's October performance.

Comparable sales in Asia/Pacific, Middle East and Africa rose 5.3% for the month fueled by sales growth in Japan, China and Australia. APMEA's October results were driven by convenience, value, and a balance of core and local offerings.

Systemwide sales increased 7.4%, or 7.8% in constant currencies, for the month.

    
    
    Percent Increase/(Decrease)         Comparable       Systemwide Sales
                                          Sales              As  Constant
    Month ended October 31,           2010     2009    Reported  Currency
    ---------------------------------------------------------------------
    McDonald's Corporation             6.5      3.3         7.4       7.8
    Major Segments: 
      U.S.                             5.6     (0.1)        6.3       6.3
      Europe                           5.8      6.4         3.4       8.3
      APMEA*                           5.3      4.7        13.4       5.7
    ---------------------------------------------------------------------
    
    Year-To-Date October 31,
    ---------------------------------------------------------------------
    McDonald's Corporation             5.2      4.2         7.5       6.6
    Major Segments: 
      U.S.                             3.8      3.1         4.4       4.4
      Europe                           4.9      5.5         4.5       7.2
      APMEA*                           6.1      4.0        15.8       7.7
    ---------------------------------------------------------------------
        * Asia/Pacific, Middle East and Africa

Definitions

Comparable sales represent sales at all restaurants in operation at least thirteen months including those temporarily closed, excluding the impact of currency translation. Some of the reasons restaurants may be temporarily closed include reimaging or remodeling, rebuilding, road construction and natural disasters. Management reviews the increase or decrease in comparable sales compared with the same period in the prior year to assess business trends.
Constant currency results exclude the effects of currency translation and are calculated by translating current year results at prior year average exchange rates.
Systemwide sales include sales at all restaurants, whether operated by the Company or by franchisees. While franchised sales are not recorded as revenues by the Company, management believes the information is important in understanding the Company's financial performance because these sales are the basis on which the Company calculates and records franchised revenues and are indicative of the financial health of the franchisee base.
The number of weekdays and weekend days can impact our reported comparable sales. In October 2010, this calendar shift/trading day adjustment consisted of one less Thursday and one more Sunday compared with October 2009. The resulting adjustment varied by area of the world, ranging from approximately -0.2% to 1.2%. In addition, the timing of holidays can impact comparable sales.

Upcoming Communications

Pete Bensen, Chief Financial Officer of McDonald's Corporation, and Jan Fields, President of McDonald's USA, will speak at 9:45 a.m. Eastern Time at the Morgan Stanley Global Consumer & Retail Conference on November 16, 2010. This presentation will be webcast live and available for replay for a limited time thereafter at www.investor.mcdonalds.com.

McDonald's tentatively plans to release November 2010 sales on December 8, 2010.

McDonald's is the leading global foodservice retailer with more than 32,000 local restaurants in more than 100 countries. More than 80% of McDonald's restaurants worldwide are owned and operated by franchisees. Please visit our website at www.aboutmcdonalds.com to learn more about the Company.

Forward-Looking Statements

This release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K.

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