McDonald's US sales rise by 1%

Press Release   •   Jul 22, 2013 16:34 BST

McDonald's says the "informal eating-out market remains challenging" and that this will affect its results for the rest of the year.

In the three months to June, the company earned $1.4bn (£910m), an increase from last year's $1.35bn but less than Wall Street had expected.

Same-store sales rose 1 percent in the US, lagging behind estimates for a 1.5 percent gain. US sales were helped by the "Dollar Menu" and new products such as chicken wraps and egg-white breakfast sandwiches.

McDonald's has faced a US consumer environment where unemployment has been stuck above 7.5 percent for 54 straight months.

Furthermore, the company is fighting to boost sales as smaller US rivals such as Wendy's Co and Burger King Worldwide Inc roll out attention-grabbing menu items and limited-time offers.

Comparable-store sales declined 0.1 percent in Europe and 0.3 percent in the company's Asia Pacific, the Middle East and Africa region, during the quarter. Analysts estimated drops of 0.1 percent and 0.2 percent, respectively.

Positive performance in the UK and Russia just failed to offset losses in France and Germany. However, operating income in the region increased five per cent and drove most of the growth in this area for the period.

Chief executive Dan Thompson added: "While our consolidated results this quarter were positive, global comparable sales for July are expected to be relatively flat.

"Based on recent sales trends, our results for the remainder of the year are expected to remain challenged."

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