McDonald’s Menu, Value Meals Drive May Sales Growth

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By Paul Ausick Updated Published
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McDonald's Big Mac Value Meal
courtesy of McDonald's
Fast-food giant McDonald’s Corp. (NYSE: MCD) today reported same-store sales growth of 2.6% in May, compared to sales in May of last year. Whether this marks a turnaround in the company’s weaker first-quarter same-store sales remains to be seen. May 2012 sales were 3.3% above the previous year’s May total. The company posted a same-store sales decline of 0.6% in April

Sales in the United States rose 2.4% in May, compared with a rise of 4.4% in May 2012. The company attributed the rise to its expanded breakfasts, more chicken options and “the ongoing appeal of everyday value.”

In Europe, sales rose 2% in May, compared with growth of 2.9% in May a year ago. The United Kingdom and Russia led the gains, but sales fell in Germany and France.

In the company’s Asia Pacific, Middle East and Africa segment (APMEA) sales rose 0.9%, compared with a sales decline of 1.7% in May 2012. Sales in China fell, which the company attributed to the recent outbreak of bird flu in the county.

For the year to date, same-store sales are down 0.2%, compared with a rise of 5.6% in the first five months of 2012. Sales have dropped in every region, with APMEA sales down the most at negative 2.4%.

Shares of McDonald’s are up 2.5% at $100.50 in premarket trading this morning. The stock’s 52-week range is $83.31 to $103.70. The 52-week high was posted in early April.

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About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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