By Courtney Dentch
Aug. 10 (Bloomberg) -- McDonald’s Corp., the world’s largest restaurant company, said global sales gained 4.3 percent in July, more than some analysts estimated, on demand for McCafe coffees and international sales. The stock rose in U.S. trading.
Sales at U.S. restaurants open at least 13 months climbed 2.6 percent, while European orders increased 7.2 percent, Oak Brook, Illinois-based McDonald’s said today in a statement. Sales in Asia, the Middle East and Africa rose 2.1 percent.
A national advertising campaign started in May helped lift McCafe espresso-based drinks to about 5 percent of total sales in the U.S. Low-priced menu items drove sales in the U.K. and France, and longer store hours boosted demand in Australia, McDonald’s said.
“They continue to impress, especially internationally,” said Peter Jankovskis, who helps manage $1.3 billion, including McDonald’s shares, at Oakbrook Investments in Lisle, Illinois. “The U.S. is not as strong as it has been, but they’re experiencing more than 2 percent growth in an economy where GNP has been falling,” he said, referring to gross national product.
McDonald’s rose $1.07, or 1.9 percent, to $56.27 at 4 p.m. in New York Stock Exchange composite trading. The stock has dropped 9.5 percent this year.
Analysts’ Estimates
Jeff Farmer, an analyst with Jefferies & Co. in Boston, anticipated a 3.5 percent increase in global same-store sales in July, with 2 percent gains in the U.S. and in the Asia, Middle East and Africa region. He projected a 5 percent gain in Europe.
Jeffrey Bernstein, an analyst with Barclays Capital in New York, estimated a gain of a 3.2 percent in global sales. He projected increases of 2 percent in the U.S., 6 percent in Europe and 1 percent in the Asia, Middle East and Africa region.
Last month, McDonald’s said second-quarter net income declined to $1.09 billion, or 98 cents a share, as sales fell 7 percent to $5.65 billion, hurt by currency translations. Global sales at established stores rose 4.8 percent in the quarter, less than analysts projected, as visits declined in countries including China.
Last month, the company introduced a $4 Angus burger, its first new hamburger in eight years, to help lure customers in the recession.
To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net.
Last Updated: August 10, 2009 16:13 EDT
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