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Last Update: 08-Aug-12 09:18 ET
McDonalds shares fall over 3% following disappointing same store sales for July
McDonald's (MCD $86.00 -3.01) reported that in July, U.S. comparable sales were relatively flat as the promotional activity did not offset the effects of the sluggish economy and last year's launch of the Mango Pineapple smoothie. Customers' ongoing appetite for McDonald's breakfast and the McCafe Frappe line-up supported the month's results. Going forward, the U.S. is focused on driving results by providing a well-balanced combination of value, variety and innovation across the menu. Europe reported a 0.6% decline in comparable sales for July as strong results in the U.K. and Russia were more than offset by weaker performance in Germany and several Southern European markets amidst an increasingly difficult environment. Europe's priority remains building guest traffic by featuring enhanced everyday value offerings alongside classic core favorites and appealing premium products. Asia/Pacific, Middle East and Africa reported a comparable sales decrease of 1.5% for July. Positive results in Australia were more than offset by ongoing weakness in Japan and the negative impact from the shift in timing of Ramadan. Throughout the segment, compelling daypart value platforms and market-leading conveniences continue to differentiate McDonald's in the region. Systemwide sales for the month decreased 3.2%, or increased 2.3% in constant currencies.
