McDonald's (MCD) Feb. Comps Fell More than Expected

(Updated - March 9, 2015 7:59 AM EDT)

McDonald's (NYSE: MCD) announced that global comparable sales decreased 1.7% in February. Performance by segment was as follows:

• U.S. down 4.0%
• Europe up 0.7%
• Asia/Pacific, Middle East and Africa (APMEA) down 4.4%

*** Consensus estimates calle d for comps to fall 0.3 percent.

Creating consistently relevant and satisfying customer experiences have been hallmarks of McDonald's business and historic success. However, consumer needs and preferences have changed, and McDonald's current performance reflects the urgent need to evolve with today's consumers, reset strategic priorities and restore business momentum. The goal going forward is to be a true destination of choice around the world and reassert McDonald's as a modern, progressive burger company.

U.S. comparable sales decreased 4.0% in February due to ongoing aggressive competitive activity. McDonald's U.S. began March with a Turnaround Summit designed to deliver renewed energy and focus around the elements of the restaurant experience that matter most to customers - relevant, high-quality food and beverage offerings, compelling value and outstanding service from a trustworthy brand.

In Europe, comparable sales increased 0.7% in February as positive performance in the U.K. and Germany was partly offset by negative results in Russia. Amid Europe's macro-economic headwinds, McDonald's continues to pursue a balanced approach to driving the business through new menu offerings, emphasis on core menu favorites, and unique value options.

APMEA's February comparable sales decreased 4.4% due primarily to the broad-based consumer perception issues in Japan, partly offset by a benefit from the shift in timing of Chinese New Year in China and certain other markets, as well as positive results in Australia. Rebuilding brand trust by strengthening McDonald's quality and value perceptions is one of APMEA's top priorities for 2015.

Strong comparable sales in McDonald's Other Countries & Corporate segment, which includes Latin America and Canada, contributed positively to the Company's global comparable sales performance for the month.

Systemwide sales for the month decreased 8.0%, or increased 0.5% in constant currencies.

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