OAK BROOK Ill. For the second straight month, McDonald’s domestic same-store sales have slipped slightly compared with a year earlier, as prolonged high unemployment has eaten into budgets for core quick-service users, especially at breakfast.
While global same-store sales for Oak Brook-based McDonald’s rose 0.7 percent in November, led by a 2.5-percent uptick in its European division, same-store sales at the chain’s restaurants in the United States fell 0.6 percent, compared with last November. Same-store sales decreased 1 percent in the Asia/Pacific, Middle East and Africa division.
McDonald’s chief executive Jim Skinner said the company’s strategy to diversify the menu, including advertising its Dollar Menu and premium product lines like the McCafe beverages and Angus Third Pounder burgers, would pave the way for a recovery in sales.
“Customers continue to find what they want at McDonald’s: menu variety, convenient locations and compelling value,” he said. “We remain focused on growing market share with a disciplined pricing strategy to provide great-tasting food at an affordable price.”
The company said such menu innovation as well as branching out to different dayparts contributed to the sales increase in the European division. Restaurants in the United Kingdom and France led the way, McDonald’s said, offsetting a weaker performance in Germany.
Same-store sales in the APMEA region reflected difficult comparisons with a November 2008 increase of 13.2 percent. While performance in Australia remained strong, McDonald’s said, restaurants in Japan and China struggled.
The regional presidents of McDonald’s different divisions will report directly to Skinner following the Dec. 31 retirement of the company’s president and chief operating officer, Ralph Alvarez.
This month, the company announced two promotions, including a Twitter sweepstakes tied to upcoming movie “Avatar” and serving once again as the official restaurant sponsor of the World Cup soccer tournament, which takes place next June in South Africa.
In midday trading, McDonald’s share price was down 2.1 percent at $60.63.
The company operates or franchises more than 32,000 restaurants in more than 100 countries.
Contact Mark Brandau at [email protected].
