McDonald's European sales surge, beating Wall Street forecasts
McDonald’s Corp., the largest fast-food chain in the world, said that its global revenue increased by at least seven percent in January as strong demand in Europe continued to push the company pass analysts’ estimates.
World’s largest fast-food restaurant chain McDonald’s Corp. reported stronger-than-expected global sales as demand in Europe continued to surge pass earlier Wall Street forecasts.
In a statement, McDonald’s said that same-store sales in Europe grew by at least seven percent in January, beating the 3.7 percent Wall Street estimates.
McDonald's Corp (MCD.N) posted stronger-than-expected global sales at established restaurants as demand in Europe came in far above Wall Street estimates.
Europe remained to be the main growth driver for the company, contributing at least 40 percent of total global revenue.
According to Oppenheimer analyst Matt DiFrisco, the strong-than-expected sales revenue would increase people’s confidence to McDonald’s, which has been under stress for several years now.
Prior to the McDonald’s report, investors have been concerned with Europe’s situation especially with austerity measures now being implemented in the region.
“As far as Europe is concerned, Europe blew it,” DiFrisco said, noting that McDonald’s shares rose by nearly one percent even before trading hours.
Meanwhile, McDonald’s worldwide sales – in stores open for at least 13 months – were up by at least 5.3 percent, higher than the 4.4 percent analysts predicted.
In the United States, which accounts to about 35 percent of the total company revenue, McDonald’s was able to post 3.1 percent gain despite high unemployment rate. However, the figure remained to be lower than the 4.4 percent forecasts.