OAK BROOK, Ill. – McDonald’s reported its first gains in global sales as demand in China recovers from the impact of food safety scandals in the country. Meanwhile, a new chicken sandwich and a return to the classic Egg McMuffin lifted sales in the United States.
Global comparable sales climbed 4 percent in the third quarter ended Sept. 30, led by strong performance in Australia, the United Kingdom and Canada. Germany also reported a strong performance. In the company’s High Growth Markets segment, which includes China, comparable sales advanced 8.9 percent. McDonald’s attributed the gains in China to its emphasis on value and breakfast during the quarter.
In the US, third-quarter sales climbed 0.9 percent, the first quarterly comparable sales increase in two years. McDonald’s said its new premium Buttermilk Crispy Chicken Deluxe sandwich and breakfast, including a return to the classic recipe for the Egg McMuffin, contributed to the segment’s performance.
|Steve Easterbrook, president and CEO of McDonald's|
“I am encouraged by our operating performance for the quarter, with positive comparable sales across all segments, including the US, as well as sales recovery in China following the prior year supplier issue,” said CEO Steve Easterbrook. “I am confident in the fundamental strength of the McDonald’s system and our ability to drive initiatives that are focused on delivering the greatest benefit for our customers.”
Net income for the quarter rose to $1.31 billion, or $1.40 per share, an increase from $1.07 billion, or $1.09 billion per share a year ago. Revenues dropped 5.3 percent to $6.62 billion.
Easterbrook said the third quarter marked an important step in McDonald’s turnaround. “As we begin the fourth quarter, comparable sales are expected to be positive in all segments,” he added. “While still in the early stages, we believe our turnaround plan is starting to generate the change needed to reposition McDonald’s as a modern, progressive burger company.”