Friday, June 09, 2006

McDonald's increases sales

McDonald's, the world's largest fast-food chain, said on Thursday that receipts are up at restaurants open longer than a year -- the key industry measure known as same-store sales -- climbed 4.5% across the system.

Same-Store Sales are sales dollars generated only by those stores that have been open more than a year and have historical data to compare this year's sales to the same time-frame last year.

In the United States, McDonald's biggest market, same-store sales grew 3.4% compared with last year's 4.2% increase. Chief Executive Jim Skinner said that breakfast sales popped after the chain introduced the new -- and pricier -- coffee products. The longer store hours also fueled sales.

In Europe -- where McDonald's has struggled on economic woes, particularly in the United Kingdom -- same-store sales rose 4.9% against an easy comparison a year ago, when sales fell 1.4%.

Positive results came out of France with thanks to the Mythics Chicken premium selections promotion and from the Big Tasty premium-hamburger promotion in Germany. Sales in the United Kingdom, the largest European market, improved with marketing linked to the World Cup, including a new text-messaging game.

Same-store sales in the Asia-Pacific, Middle East and Africa regions jumped 6.5%, compared with last year's 0.6% slide, on strong sales in Japan and ongoing positive results in Australia.

Total sales rose 6.2% in May.

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