McDonald’s key revenue measure rises in August
THE ASSOCIATED PRESS September 10, 2013 8:20AM
McDonald’s Corp. said Tuesday that a key revenue figure rose 1.9 percent in August, driven by a strong performance in Europe. Its Monopoly promotion in the United States helped lift its performance there. | AP file photo
OAK BROOK — McDonald’s Corp. said Tuesday that a key revenue figure rose 1.9 percent in August, driven by a strong performance in Europe. Its Monopoly promotion in the United States helped lift its performance there.
The world’s biggest hamburger chain reported the gain in revenue at restaurants open at least 13 months for the period ended Aug. 31. That includes a 3.3 percent increase in Europe, a 0.2 percent rise in the U.S. and a 0.5 percent decline in Asia Pacific.
This figure is a key gauge of a restaurant operator’s health because it excludes results from restaurants recently opened or closed.
The monthly sales figure is a snapshot of the money spent on food at company-owned and franchised locations and does not reflect corporate revenue.
While the metric improved for McDonald’s in August, it was slower growth than the 3.7 percent increase in the prior-year period. But it was faster growth than the 0.7 percent increase in July.
The company is trying to navigate a variety of challenges and has already said it expects the rest of this year to be challenging. To start, McDonald’s is facing intensifying competition from long-time rivals Burger King and Wendy’s, which have been revamping their menus and stepping up marketing.
In addition, McDonald’s is trying to keep up with changing tastes by offering items people feel are fresher or healthier, such as its new chicken wraps and egg white breakfast sandwiches. But the chain has also been aggressively promoting its Dollar Menu and other deals at a time when it says people are being more careful about spending.
And it said Tuesday it has begun offering steak as an option for all breakfast sandwiches, including the McMuffin and biscuit or bagel breakfast sandwiches. The “steak on any” option has been rolling out to 9,600 McDonald’s restaurants in August and September.
Analysts have expressed concern that the latter strategy could eat into profit margins. But last week, the chain said it was exploring a revamped Dollar Menu that includes items costing as much as $5 that could go national this year.
McDonald’s, which has more than 34,000 locations globally, is also trying to remind people of longtime favorites and has been featuring its Big Mac in TV and online ads. It also recently expanded its lineup of Quarter Pounders, saying it wanted to capitalize on the popularity of the burger.