McDonald Corporation’s (MCD: 69.16 -0.21 -0.30%) comparable sales are on the rise. Although diners are now more comfortable spending as the economy eases, but they are still seeking value menu offerings. The fast food restaurant operator has witnessed an uptrend across its domestic and international markets.
Global comparable-store sales climbed 4.8% in May 2010 compared to an increase of 5.1% in the same month last year. McDonald’s stated that system-wide sales at worldwide restaurants surged 5.5% or 6.2% in constant currencies in the month under review.
The world’s largest hamburger chain, McDonald’s, said that the new menu offerings, which include value-based drinks, Shrek-themed Chicken McNuggets and addition of Frappes to its McCafe premium coffee line-up, along with Happy Meals promotion have helped boost the U.S. comparable-store sales. McDonald’s said that the U.S. comparable sales grew 3.4% in May (versus a 2.8% increase last year for the comparable month).
McDonald’s closest competitor Burger King Holdings Inc. (BKC: 18.96 -0.06 -0.32%) also announced recently that it expects unfavorable foreign exchange rates, primarily related to the Euro and British Pound, to impact earnings for the fourth quarter of 2010 by 1 to 2 cents per share. For the full year, currency exchange translation is expected to have a neutral to a slightly negative effect on earnings.
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