OAK BROOK, Ill., Dec. 8, 2014 /PRNewswire/ -- McDonald's Corporation today announced that global comparable sales decreased 2.2% in November. Performance by segment was as follows:
- U.S. down 4.6%
- Europe down 2.0%
- Asia/Pacific, Middle East and Africa (APMEA) down 4.0%
"Today's consumers increasingly demand more choice, convenience and value in their dining-out experience," said McDonald's President and Chief Executive Officer Don Thompson. "We are working to bring the McDonald's Experience of the Future to life for our customers to better deliver against these evolving expectations. Each of our geographic segments is focused on regaining business momentum by prioritizing initiatives to improve comparable sales performance in the near-term, while developing innovations to deliver sustained profitable growth through McDonald's Experience of the Future."
In November, U.S. comparable sales decreased 4.6% amid strong competitive activity. To restore momentum, McDonald's U.S. is diligently working to enhance its marketing, simplify the menu, and implement a more locally-driven organizational structure to increase relevance with consumers.
Europe's comparable sales decreased 2.0% in November as positive performance in the U.K. was more than offset by very weak results in Russia and negative results in France and Germany. While the operating environment remains challenging across most of the segment, McDonald's Europe remains focused on providing customers with locally-relevant value and premium menu options, including differentiated beverage and breakfast offerings.
In November, APMEA's comparable sales decreased 4.0%, reflecting the ongoing impact of the supplier issue on performance in Japan and China, partly offset by positive performance in Australia. Brand recovery campaigns continue in the markets affected by the supplier issue. To drive customer traffic and improve performance, markets across APMEA are leveraging compelling menu options, value platforms and the segment's enhanced convenience initiatives.
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.
The following items are expected to negatively impact fourth quarter results:
- Negative top-line performance is expected to significantly pressure company-operated and franchised margins
- $0.07 to $0.10 per share due to the ongoing impact of the supplier issue in China, as previously communicated
- $0.07 to $0.09 per share due to strengthening of the U.S. dollar against nearly all foreign currencies. Full report.