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-- Global comparable sales up 5.0% in December and positive for every
month of 2005 -- reaching 32 consecutive months of comparable sales
increases
-- December comparable sales for the U.S. and Europe rose 4.4% and 4.6%,
respectively
-- Fourth quarter 2005 earnings per share are expected to be about $0.48
per share -- a significant increase over the prior years performance
OAK BROOK, Ill., Jan. 17 /PRNewswire-FirstCall/ -- McDonalds Corporation
(NYSE: MCD) announced today that global comparable sales rose 5.0% in
December, on top of a 4.9% increase achieved for December 2004. Global
comparable sales for the fourth quarter and year were strong at 4.2% and 3.9%,
respectively.
McDonalds Chief Executive Officer Jim Skinner commented, "Im pleased
with the solid performance delivered under the Plan to Win and our ability to
sustain the momentum weve created. The positive comparable sales achieved
across all segments for the second consecutive year is evidence of the
effectiveness of our ongoing customer-focused initiatives. Throughout 2005,
we strengthened our business around the world with more quality food choices,
greater convenience and an enhanced focus on the McDonalds restaurant
experience.
"In the U.S., comparable sales rose 4.4% for the month of December,
reflecting the ongoing popularity of McDonalds signature breakfast menu and
our premium chicken offerings. U.S. customers also responded positively to
McDonalds Arch Cards, our new gift cards launched during the holidays.
"Europes comparable sales for the month were up 4.6%, led by strong
performance in Germany, France and Russia. In Germany, customer enthusiasm
for the markets December Monopoly promotion combined with our everyday value
menu and premium products drove results. We remain focused on building sales
momentum across Europe, and I am confident we have the right plans in place to
do this.
"In Asia/Pacific, Middle East and Africa, ongoing initiatives to provide
locally relevant menu options and compelling everyday value drove comparable
sales up 5.9% in December, led by strong results in Japan, Australia and
Taiwan.
"As we look forward to 2006, I am confident that our customer-focused
initiatives will continue to further connect with consumers and deliver long
term, profitable growth for all McDonalds shareholders."
Percent Inc/(Dec) Comparable Systemwide Sales
Sales As Constant
Month ended December 31, 2005 2004 Reported Currency
--------------------------------------------------------------------
McDonalds Restaurants* 5.0 4.9 2.0 6.0
Major Segments:
U.S. 4.4 6.9 5.2 5.2
Europe 4.6 2.2 (5.7) 5.7
APMEA** 5.9 3.3 0.7 7.8
Quarter ended December 31,
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McDonalds Restaurants* 4.2 5.1 2.5 5.2
Major Segments:
U.S. 4.1 7.2 4.8 4.8
Europe 2.8 1.8 (4.0) 3.9
APMEA** 5.8 3.1 2.3 7.6
Year-To-Date December 31,
--------------------------------------------------------------------
McDonalds Restaurants* 3.9 6.9 5.6 5.0
Major Segments:
U.S. 4.4 9.6 5.1 5.1
Europe 2.6 2.4 4.1 4.0
APMEA** 4.0 5.6 6.2 5.6
* Excludes non-McDonalds brands
** Asia/Pacific, Middle East and Africa
Fourth quarter 2005 earnings are expected to be about $0.48 per share,
including a combined $0.03 per share of negative impact from foreign currency
exchange rates and expense related to asset impairment, primarily in South
Korea. Fourth quarter 2004 reported earnings were $0.31 per share. Fourth
quarter 2004 pro forma earnings of $0.28 per share included stock-based
compensation expense of $0.03 per share*. Both reported and pro forma
earnings for 2004 included $0.14 per share net expense related to lease
accounting, asset impairment and a non-operating gain.
* Pro forma stock compensation expense was $0.11 per share for 2004, as
disclosed in our 2004 Form 10-K, and $0.08 for the first nine months of
2004, as disclosed in the applicable Form 10-Q. Accordingly, pro forma
stock compensation for the fourth quarter of 2004 was $0.03 per share.
Definitions
-- Comparable sales represent sales at all McDonalds restaurants in
operation at least thirteen months including those temporarily closed,
excluding the impact of currency translation. Some of the reasons
restaurants may be temporarily closed include road construction,
reimaging or remodeling, and natural disasters such as hurricanes.
Management reviews the increase or decrease in comparable sales
compared with the same period in the prior year to assess business
trends.
-- Information in constant currency is calculated by translating current
year results at prior year average exchange rates.
-- Systemwide sales include sales at all McDonalds restaurants, including
those operated by the Company, franchisees and affiliates. Management
believes Systemwide sales information is useful in analyzing the
Companys revenues because franchisees and affiliates pay rent, service
fees and/or royalties that generally are based on a percent of sales
with specified minimum rent payments.
Upcoming Communications
McDonalds tentatively plans to release fourth quarter results before the
market opens on January 24, 2006, and will host an investor webcast at 10:30
a.m. Central Time. A link to the live and archived webcast will be available
on http://www.investor.mcdonalds.com .
McDonalds is the leading global foodservice retailer with more than
30,000 local restaurants in more than 100 countries. Approximately 70% of
McDonalds restaurants worldwide are owned and operated by independent, local
businessmen and women. Please visit our website at http://www.mcdonalds.com
to learn more about the Company.
Forward-Looking Statements
This release contains certain forward-looking statements, which reflect
managements 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. A list of the factors that could
cause actual results to differ materially from those expressed in, or
underlying, these forward-looking statements is detailed in the Companys
filings with the Securities and Exchange Commission, such as its annual and
quarterly reports.
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