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Bird Flu in China Hits McDonald's Results

10 May 2013

GLOBAL - McDonald's Corporation reports comparable sales in April 0.6 per cent below the same month in 2012 with a 2.9 per cent fall in Asia/Pacific, Middle East and Africa (APMEA), which the company attributed to the impact of bird flu, especially in China.

Performance by segment was as follows: US up 0.7 per cent; Europe down 2.4 per cent; Asia/Pacific, Middle East and Africa (APMEA) down 2.9 per cent

McDonald's President and Chief Executive Officer, Don Thompson, said: "McDonald's is focused on becoming our customers' favourite place and way to eat and drink by leveraging the strength of our menu variety, unsurpassed value and convenience, and by emphasizing outstanding customer service.

"As we begin the second quarter against the backdrop of a persistently challenging macro environment, the McDonald's System is aligned around executing our long-term strategies to drive sustained, profitable growth."

In the US, comparable sales increased 0.7 per cent in April as McDonald's remains a relevant and affordable choice for consumers. The national introduction of Premium McWraps, compelling value options and the ongoing popularity of McDonald's breakfast contributed to the month's results. Looking ahead, US initiatives will feature a balanced combination of value, menu innovation and service.

In Europe, April comparable sales decreased 2.4 per cent with positive performance in the UK and Russia more than offset by Germany, France and other markets. McDonald's markets across Europe continue to pursue customer-focused strategies around menu choice, everyday affordability and enhancing brand presence by adding new restaurants and increasing operating hours.

In April, APMEA's comparable sales declined 2.9 per cent, reflecting the impact of avian influenza, primarily in China, and softer results in Japan and Australia. Across the region, McDonald's is striving to improve performance by emphasising unique value platforms, accelerating growth at breakfast and enhancing customer service and convenience.

Systemwide sales for the month decreased 0.4 per cent and increased 1.9 per cent in constant currencies.

For the year to date, comparable sales were down in all regions - global (-0.9 per cent), US (-0.7 per cent), Europe (-1.5 per cent) and APMEA (-3.2 per cent). All had recorded increases in 2012.

TheMeatSite News Desk

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