McDonald's (MCD) Shares Slip, Comps Up 3.3% in May on Weak Emerging Market Sales
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Price: $101.03 -0.7%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 3%
EPS Growth %: +11.2%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 3%
EPS Growth %: +11.2%
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McDonald's (NYSE: MCD) shares are eating an "un-Happy" Meal Friday morning following its May sales numbers.
According to the fast-food giant, global comparable-store sales in May rose 3.3 percent, compared with a 3.1 percent rise in the same period last year. Comps also rose 3.3 percent in April.
Initial looks at the numbers indicate better metrics: U.S. comps were up 4.4 percent, compared to a 2.4 percent gain in the same period last year, and Europe comps rose 2.9 percent, versus a 2.3 percent increase in May 2011.
However, the key Asia/Pacific, Middle East, and Africa (APMEA) saw comps fall 1.7 percent, reversing gains of 4.3 percent in May of last year. Japan was the main factor in the decline, with a little help from China. Sales in Australia were said to be strong. Unadjusted APMEA sales rose just 0.3 points.
"Our commitment to providing customers with menu variety, value and convenience delivered global comparable sales growth in May despite the increasingly challenging global economic environment," said CEO Jim Skinner. "I am confident we will continue to deliver long-term sustainable growth as we remain focused on the opportunities that will enable Brand McDonald's to further extend our relevance to the 68 million customers who we serve around the world every day."
Systemwide sales also slipped from a 12.0 percent gain last year to just a 1.2 percent gain in the recent period. Adjusting for currency, sales rose from 4.7 percent to 5.6 percent.
Year-to-date comps are up 5.6 percent, compared to a 4.4 percent gain last May and a 4.5 percent rise in May 2010. YTD sales in April 2012 were up 6.2 percent.
Shares of McDonald's are down 3 percent early Friday.
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According to the fast-food giant, global comparable-store sales in May rose 3.3 percent, compared with a 3.1 percent rise in the same period last year. Comps also rose 3.3 percent in April.
Initial looks at the numbers indicate better metrics: U.S. comps were up 4.4 percent, compared to a 2.4 percent gain in the same period last year, and Europe comps rose 2.9 percent, versus a 2.3 percent increase in May 2011.
However, the key Asia/Pacific, Middle East, and Africa (APMEA) saw comps fall 1.7 percent, reversing gains of 4.3 percent in May of last year. Japan was the main factor in the decline, with a little help from China. Sales in Australia were said to be strong. Unadjusted APMEA sales rose just 0.3 points.
"Our commitment to providing customers with menu variety, value and convenience delivered global comparable sales growth in May despite the increasingly challenging global economic environment," said CEO Jim Skinner. "I am confident we will continue to deliver long-term sustainable growth as we remain focused on the opportunities that will enable Brand McDonald's to further extend our relevance to the 68 million customers who we serve around the world every day."
Systemwide sales also slipped from a 12.0 percent gain last year to just a 1.2 percent gain in the recent period. Adjusting for currency, sales rose from 4.7 percent to 5.6 percent.
Year-to-date comps are up 5.6 percent, compared to a 4.4 percent gain last May and a 4.5 percent rise in May 2010. YTD sales in April 2012 were up 6.2 percent.
Shares of McDonald's are down 3 percent early Friday.
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