McDonald’s extends sales growth on strong US performance

McDonald's sign
McDonald’s has finished the year with solid Q4 sales growth. (Source: Bigstock)

McDonald’s Corporation has finished the year with another quarter of solid sales growth, fueled by the continued improvement at its US division.

The company’s global comparable sales increased 5.7 per cent in the fourth quarter, which ended on December 31, following a 3.6 per cent growth in the third quarter. 

The growth was led by a 6.8 per cent increase in the US, a marked improvement compared to the 2.4 per cent uplift in the third quarter. This was driven by positive check and guest count growth, primarily from successful marketing promotions.

International operated markets saw comparable sales increase 5.2 per cent, led by the UK, Germany and Australia. International developmental licensed markets grew 4.5 per cent, led by Japan.

Consolidated revenues for the quarter rose 10 per cent to $7 billion, and systemwide sales were up 11 per cent. Consolidated operating income rose 10 per cent.

“McDonald’s value leadership is working,” said chairman and CEO Chris Kempczinski. “By listening to customers and taking action, we have improved traffic and strengthened our value and affordability scores.”

“The momentum we’ve built reinforces the progress we’ve made with our strategy and has earned us the right to look forward together as a system,” Kempczinski added.

For the full year, global comparable sales increased 3.1 per cent, with the US up 2.1 per cent, international operated markets up 3.2 per cent and international developmental licensed markets up 4.6 per cent.

Consolidated revenues increased 4 per cent to $26.8 billion and systemwide sales grew 7 per cent. Net income improved 4 per cent to $8.5 billion.

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