McDonald's November Global Comps Rise 0.5% - Update

(RTTNews) - Fast food giant McDonald's Corp. (MCD) Monday said its global comparable sales for November rose marginally, supported by growth in Europe even as other regions showed declines. Systemwide sales for the month increased 1.1 percent, or 3.1 percent in constant currencies.

The company's comparable sales growth was 0.5 percent, compared to a 2.4 percent increase in the same month last year.

U.S. comparable sales decreased 0.8 percent, in comparison with a 2.5 percent growth last year, amid ongoing competitive activity and relatively flat industry traffic trends. The performance was supported by breakfast, chicken menu choices and expanded value offerings.

Looking ahead to 2014, the U.S. plans to strengthen key elements of customer service and leverage the breadth of menu choices across all dayparts and value tiers.

In Europe, November's comparable sales increased 1.9 percent as positive performance in the U.K., France and Russia was somewhat offset by negative results in Germany. November's comparable sales in Europe in 2012 was 1.4 percent.

McDonald's said Europe benefited from appealing premium, core and value menu options, compelling promotional food events and continued focus on key dayparts, despite a tepid informal eating out market.

Comparable sales in Asia/Pacific, Middle East and Africa or APMEA declined 2.3 percent in November, compared to a 0.6 percent growth last year, due primarily to negative results in Japan. In order to improve performance, APMEA is pursuing customer-focused initiatives that broaden accessibility and enhance value across all dayparts.

Year-to-date, comparable sales rise was 0.4 percent in comparison with a 3.4 percent increase last year. System-wide sales advanced 1.2 percent and were up 2.9 percent on a constant-currency basis. McDonald's CEO Don Thompson said, "As consumer expectations and the marketplace continue to evolve, we are making investments in our menu, restaurants and service to strengthen our connection with customers and build our business for long-term profitable growth."

MCD closed at $96.80 on Friday. The stock is down 0.6 percent in pre-market activity.