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McDonald’s US feels squeeze on operating income, lifted by Q1 sales

Fast Food Restaurants Remain Firm Favourites With UK Consumers

McDonald’s said yesterday that first quarter operating income in the US fell 5%, reflecting lower gains on sales of restaurant businesses and lower company-operated margin dollars, partly offset by higher franchised margin dollars and lower G&A costs.

Despite the decrease, comparable sales actually spiked 4.5%, reflecting successful promotions, including its ‘Bacon Event’, the 2 for $5 Mix and Match deal, and Donut Sticks.

Meanwhile, global comparable sales increased 5.4%, reflecting strong comparable sales across all segments. Systemwide sales increased 6% in constant currencies.

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President and CEO Steve Easterbrook said it had started the year strongly with its 15th consecutive quarter of positive global comparable sales.

“Two years into the Velocity Growth Plan, our sustained performance gives us confidence that our strategy is working, as more customers are experiencing a better McDonald’s every day. We remain focused on optimizing execution of the Plan, and our recent acquisition of Dynamic Yield further demonstrates our relentless determination to seize opportunities to unlock greater potential and position McDonald’s for long-term sustainable growth.”

Results for the quarter in constant currencies primarily reflected stronger operating performance due to an increase in sales-driven franchised margin dollars, partly offset by lower gains on sales of restaurant businesses, mostly in the US.

Tags : financialsMcdonald's
Andrew Seymour

The author Andrew Seymour

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