Key McDonald’s sales figure up 5.5%

November 09, 2011|Associated Press

Revenue at stores open at least 13 months rose 6.1 percent in McDonalds Asia/Pacific-Middle… (Soo Hoo Zheyang/Reuters )

NEW YORK - McDonald’s Corp. said a key revenue figure rose 5.5 percent in October, fueled by sales in China and other foreign markets and the popularity of its Monopoly game in the United States.

Revenue at stores open at least 13 months rose 5.2 percent in the United States, 4.8 percent in Europe, and 6.1 percent in the region covering Asia/Pacific, the Middle East, and Africa.

The results in all regions beat analysts’ expectations.

The revenue figure is a snapshot of money spent on food at both company-owned and franchised restaurants. It does not reflect corporate revenue. It excludes the impact of recently opened or closed stores.

The world’s largest burger chain has fared well in the recession and its aftermath by reshaping itself as a hip, healthier place to eat. It has remodeled stores, installed wireless service, and added fancy coffee drinks to the menu. It has added items like smoothies and oatmeal meant to appeal to healthier eaters. And it has continued to promote itself as a cheap place to get a meal.

France, Russia, and the United Kingdom led revenue gains in Europe. Australia, China, and Japan drove revenue in the Asia/Pacific area.

McDonald’s is focusing on overseas markets as the US economy continues to struggle. The United States accounts for about 31 percent of McDonald’s total revenue. Europe is its largest market.

McDonald’s has also been successful at raising prices, said a Jefferies analyst, Andy Barish. It has raised menu prices twice this year to make up for higher costs of beef and fuel.