McDonalds Reports August Sale Growth of 8.1 Percent

By Alice Turner
15:42, September 11th 2007
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McDonalds Reports August Sale Growth of 8.1 Percent

McDonald's Corp., the world's largest chain of fast-food restaurants , reported an 8.1 percent growth in its August sales, at restaurants open at least thirteen months, and 12.3 pct system wide sales increase.

The sales boost was reportedly helped by new food offerings in the United States and strong demand in Japan, Australia and China.

The company said same-store sales climbed 7.4 percent in the United States, citing the ongoing strength of its breakfast business, beverages and new food offerings.

In the European sector, positive sales growth in France, UK and Germany especially due to summertime menu items facilitated the sales increase of up to 6.1 percent.

Comparable sales increased 12.4 pct in the Asia-Pacific region, Middle East and Africa on the back of strong sales in Japan, Australia and China.

McDonalds announced that system wide sales were up 9.3 pct in constant currencies in August. Systemwide sales refer to sales at all McDonald's restaurants, together with those operated by the company, franchisees and affiliates.

Chief Executive Jim Skinner said: "Our world-wide sales momentum continues, thanks to our customer-focused emphasis on menu variety and value, convenient service, innovative marketing and contemporary restaurants.”

Up to one-third of McDonalds’ U.S. revenue comes from breakfast items as the Oak Brook, Ill. Company has 40% of the fast-food breakfast market, according to Bob Sandelman, chief executive of research firm Sandelman & Associates.

Shares of McDonald's rose 2.2%, from$50.15 to $51, in Tuesday pre-market trading.
Two weeks ago McDonald's sold its Boston Market restaurant chain to Sun Capital Partners Inc. for an undisclosed figure. McDonald's purchased the chain in 2000.



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