McDonald's (MCD) May Same Store Sales Rise 5.1%

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June 8, 2009 8:06 AM EDT

McDonald's Corporation (NYSE: MCD) reports same store sales for the month of May came in at up 5.1%. Comparable sales increases by segment were as follows:

U.S. increased 2.8%
Europe increased 7.6%
Asia/Pacific, Middle East and Africa increased 6.4%

"May's strong performance tells us that customers around the world continue to choose McDonald's for the convenience, menu choice, quality and value we offer. Our focus on the customer and alignment around the Plan to Win are driving our ongoing success," said CEO Jim Skinner.

McDonald's U.S. business momentum continued with May comparable sales increasing 2.8%. The national introduction of the new McCafe espresso-based coffees and popularity of classic menu favorites contributed to the month's result as the Company lapped last year's successful launch of the Southern Style Chicken Biscuit and Sandwich.

In Europe, strong performance in the U.K., France, Germany and Russia drove comparable sales up 7.6%. European customers continue to respond to daypart expansion, menu variety and everyday affordability initiatives.

Comparable sales rose 6.4% in Asia/Pacific, Middle East and Africa primarily due to Australia, where a focus on relevant menu offerings and convenience have delivered sustained strong sales momentum. The segment's results also benefited from positive comparable sales in Japan, but were partly offset by China.

Systemwide sales for McDonald's worldwide restaurants declined 0.4% for the month, due to the negative impact of foreign currency translation. In constant currencies, Systemwide sales were up 7.0%. Foreign currency exchange rates remain volatile and, accordingly, are expected to continue to negatively impact results. If foreign currency exchange rates continue to approximate current levels, the estimated negative translation impact on EPS is expected to be $0.08-$0.09 in Q2 and about $0.20 for the year.

Sees Q2 EPS including $0.02 to $0.03 per share of income due to the developmental license transaction in Indonesia and incremental income related to the sale of Redbox Automated Retail, LLC.