UK, France drive McDonald's international market growth
The fast food giant's global sales were positive for the 15th straight quarter.
Announcing the results of the company’s first quarter ended March 31, 2019, Steve Easterbrook, McDonald's President and Chief Executive Officer, said that global comparable sales rose 5.4% during the period, reflecting strong comparable sales across all segments.
In the U.S., first quarter comparable sales increased 4.5%, reflecting successful promotions, including the “Bacon Event”, the 2 for $5 Mix and Match deal, and Donut Sticks, as well as a net positive impact from the brand’s Experience of the Future redesign rollout.
International markets showed first quarter comparable sales growth of 6.0%, for both company-operated and developmental license segments, with markets like the U.K. and France driving sales.
“We started the year strong with our 15th consecutive quarter of positive global comparable sales, reflecting continued broadbased momentum across each of our global segments,” Easterbrook said. “We remain focused on running better restaurants and elevating the experience for our customers by providing convenience on their terms through delivery, Experience of the Future, and our evolving digital channels."
However, the fast food giant saw its consolidated revenues slip by 4% to $4.96 billion due to refranchising costs. Consolidated operating income also decreased 2% to $2.09 billion.
Moving forward, McDonald’s is set on expanding its delivery and digital ordering options alongside its massive plans to redesign its restaurants with new technology such as self-serve ordering kiosks and digital menu boards.
“Two years into the Velocity Growth Plan, our sustained performance gives us confidence that our strategy is working, as more customers are experiencing a better McDonald’s every day. We remain focused on optimizing execution of the Plan, and our recent acquisition of Dynamic Yield further demonstrates our relentless determination to seize opportunities to unlock greater potential and position McDonald’s for long-term sustainable growth,” Easterbrook said.
