McDonald’s Corp., the world’s largest restaurant chain, said sales at stores open at least 13 months rose 3.3 percent globally last month, falling short of analysts’ estimates, as sales declined in Japan and China.
Analysts projected a gain of 5.2 percent, the average of 13 estimates compiled by Consensus Metrix. Sales in Asia Pacific, the Middle East and Africa declined 1.7 percent, the Oak Brook, Illinois-based company said today in a statement. Analysts estimated an increase of 3.2 percent.
“Positive results in Australia were more than offset by negative results in Japan and, to a lesser extent, China,” McDonald’s said in the statement. Same-store sales in Japan declined 11 percent in May. The company cited the impact of increased sales in the aftermath of the 2011 Japan earthquake for last month’s year-over-year decline.
McDonald’s fell 2.7 percent to $85.95 at 8:04 a.m. in New York. The shares had declined 12 percent this year before today.
Sales rose 4.4 percent in the U.S. and 2.9 percent in Europe. Analysts were projecting growth of 5.3 percent for McDonald’s stores in the U.S. and 5.1 percent for European locations, according to the average estimate of analysts surveyed by Consensus Metrix, a researcher owned by Wayne, New Jersey-based Kaul Advisory Group.
China yesterday cut its borrowing costs for the first time since 2008 and loosened controls on banks’ lending and deposit rates, signaling that its economy may be weaker than the government expected.
McDonald’s has about 1,500 restaurants in China. The Big Mac seller is working to compete with Yum! Brands Inc.’s KFC and Pizza Hut chains by rapidly building stores there. McDonald’s plans to open 250 stores in China this year.
© Copyright 2022 Bloomberg News. All rights reserved.