McDonald's Reports Global Comparable Sales For July

             McDonald's Reports Global Comparable Sales For July

PR Newswire

OAK BROOK, Ill., Aug. 8, 2014

OAK BROOK, Ill., Aug. 8, 2014 /PRNewswire/ -- McDonald's Corporation today
announced that global comparable sales decreased 2.5%in July. Performance by
segment was as follows:

  oU.S. down 3.2%
  oEurope up 0.5%
  oAsia/Pacific, Middle East and Africa (APMEA) down 7.3%

"McDonald's global growth priorities - providing our customers with their
favorite food and drinks, creating memorable experiences, offering
unparalleled convenience and becoming an even more trusted brand - are the
foundation of our customer-centric approach to building our business for the
long term," said McDonald's President and Chief Executive Officer Don
Thompson. "Although July's results were not in-line with McDonald's
expectations, we intend to strengthen our performance by addressing the
current business headwinds with the discipline and conviction that inspire our
customers' trust and loyalty."

In July, U.S. comparable sales decreased 3.2% amid continuing broad-based
challenges. During the month, the U.S. featured core favorites in conjunction
with McDonald's global World Cup sponsorship and promoted premium beef and
chicken options as the segment lapped a prior year Monopoly event. McDonald's
U.S. remains focused on enhancing its customer relevance and appeal through
service, value and menu initiatives.

Europe's comparable sales rose 0.5% in July led by positive performance in
France and the U.K., partly offset by negative performance in Germany and
Russia. McDonald's Europe is taking a holistic approach to building customer
demand with a combination of compelling limited-time menu choices and
expansion of the breakfast daypart and blended-ice beverages.

In July, APMEA's comparable sales decreased 7.3% reflecting the impact of food
quality and safety issues at a supplier to McDonald's and other food companies
in China. As a consequence, results in China, Japan and certain other markets
experienced a significant negative impact. The affected markets represent
approximately 10% of global systemwide sales and negatively impacted the
segment's July comparable sales by over 700 basis points. Going forward,
McDonald's is undertaking recovery strategies to restore customers' trust and
confidence.

In the Form 8-K dated July 22, 2014, the Company indicated that full year 2014
global comparable sales were expected to be relatively similar to year-to-date
June performance (i.e. relatively flat) given a stagnant IEO category,
sustained competitive activity, consumer price sensitivity and cost
pressures. However, as a result of the China supplier issue, the Company's
global comparable sales forecast for 2014 is now at risk.

Systemwide sales for the month decreased 0.5%, or 0.0% in constant currencies.

Percent Increase/(Decrease)  Comparable Sales  Systemwide Sales
                                               As        Constant
Month ended July 31,         2014      2013    Reported  Currency
McDonald's Corporation       (2.5)     0.7     (0.5)     0.0
Major Segments:
 U.S.                      (3.2)     1.6     (2.2)     (2.2)
 Europe                    0.5       (1.9)   6.9       3.3
 APMEA                     (7.3)     (1.9)   (2.8)     (2.9)
Year-To-Date July 31,
McDonald's Corporation       (0.2)     0.1     0.7       2.3
Major Segments:
 U.S.                      (1.9)     0.2     (0.9)     (0.9)
 Europe                    0.2       (0.8)   6.3       3.0
 APMEA                     (0.2)     (1.9)   (0.2)     4.3

Definitions

  oComparable sales represent sales at all restaurants, whether operated by
    the Company or by franchisees, in operation at least thirteen months
    including those temporarily closed. Some of the reasons restaurants may be
    temporarily closed include reimaging or remodeling, rebuilding, road
    construction and natural disasters. Comparable sales exclude the impact of
    currency translation. Comparable sales are driven by changes in guest
    counts and average check, which is affected by changes in pricing and
    product mix. Typically, pricing has a greater impact on average check than
    product mix. Management reviews the increase or decrease in comparable
    sales compared with the same period in the prior year to assess business
    trends.
  oThe number of weekdays and weekend days can impact our reported comparable
    sales. In July 2014, this calendar shift/trading day adjustment consisted
    of one less Monday and one more Thursday compared with July 2013. The
    resulting adjustment varied by area of the world, ranging from
    approximately 0.2% to 0.5%. In addition, the timing of holidays can impact
    comparable sales.
  oInformation in constant currency is calculated by translating current year
    results at prior year average exchange rates. Management reviews and
    analyzes business results excluding the effect of foreign currency
    translation and bases incentive compensation plans on these results
    because they believe this better represents the Company's underlying
    business trends.
  oSystemwide sales include sales at all restaurants, whether operated by the
    Company or by franchisees. While franchised sales are not recorded as
    revenues by the Company, management believes the information is important
    in understanding the Company's financial performance because these sales
    are the basis on which the Company calculates and records franchised
    revenues and are indicative of the financial health of the franchisee
    base.

Upcoming Communications

The Company plans to release August 2014 sales information on September 9,
2014.

About McDonald's

McDonald's is the world's leading global foodservice retailer with over 35,000
locations serving approximately 70 million customers in over 100 countries
each day. More than 80% of McDonald's restaurants worldwide are owned and
operated by independent local business men and women.

Forward-Looking Statements

This release contains certain forward-looking statements, which reflect
management's expectations regarding future events and operating performance
and speak only as of the date hereof. These forward-looking statements involve
a number of risks and uncertainties. The factors that could cause actual
results to differ materially from our expectations are detailed in the
Company's filings with the Securities and Exchange Commission, such as its
annual and quarterly reports and current reports on Form 8-K.

SOURCE McDonald's Corporation

Website: http://www.mcdonalds.com
Contact: Investors: Kathy Martin, 630-623-7833 or Media: Becca Hary,
630-623-7293
 
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