(Bloomberg) -- McDonald's Corp. said May sales jumped as it sold more hamburgers and breakfast items in the U.K., France and Australia, sending the shares up the most since January in New York trading.
Sales at stores open more than 13 months increased 7.7 percent, led by a 9.6 percent increase in Europe and a 9.7 percent gain in Asia, the Middle East and Africa, the Oak Brook, Illinois-based company said today in a statement.
Chief Executive Officer James Skinner has pushed into overseas markets, tailoring hamburgers and Egg McMuffins to the tastes of local customers and allowing the world's largest restaurant company to grow even as U.S. demand slows. Same-store sales in the U.S. rose 4.3 percent.
``These are pretty strong,'' Matthew DiFrisco, an analyst with Oppenheimer & Co. in New York, said in a telephone interview. ``They beat my expectations in all three regions pretty meaningfully.'' Difrisco said he was expecting same-store sales to rise 2.4 percent.
McDonald's gained $2.11, or 3.7 percent, to $59.06 at 10:36 a.m. in New York Stock Exchange composite trading. It was the biggest increase since Jan. 31. The shares have doubled since Skinner was named CEO in November 2004.
Europe is McDonald's biggest region by revenue, generating 42 percent of sales in the first quarter and 39 percent of operating profit. The U.S. generated 47 percent of profit.
Skinner has tried to bolster U.S. sales with the introduction of chicken sandwiches and biscuits in April to spur sales as Burger King Holdings Corp. and Wendy's International Inc. sold discount-priced burgers and breakfast fare for consumers pinched by rising fuel and grocery costs.
European Push
In Europe, McDonald's will push both lower-priced and premium products and emphasize profitable breakfast menus and drive-through restaurants, Jack Russo, an analyst with Edward Jones & Co., said in a May 29 note to clients.
``Our viewpoint on McDonald's is positive as U.S., European and Asian same-store sales have improved dramatically over the years,'' he said. McDonald's said April 22 that same-store sales growth in Europe was a major contributor to a 24 percent increase in first-quarter net income.
McDonald's had a 0.8 percent decline in U.S. same-store sales in March, the first drop in five years as consumers cut back on restaurant meals. A push into specialty coffee in the U.S. may spur revenue, and the rollout has already contributed 1 to 2 percentage points to same-store sales in test markets, Jason West, an analyst with Deutsche Bank AG, said in a May 20 report.
The chain started selling stronger coffee in 2006 to capture sales from Starbucks Corp., and plans to install counters selling cappuccino and lattes through 2009.
Sales at stores open more than 13 months increased 7.7 percent, led by a 9.6 percent increase in Europe and a 9.7 percent gain in Asia, the Middle East and Africa, the Oak Brook, Illinois-based company said today in a statement.
Chief Executive Officer James Skinner has pushed into overseas markets, tailoring hamburgers and Egg McMuffins to the tastes of local customers and allowing the world's largest restaurant company to grow even as U.S. demand slows. Same-store sales in the U.S. rose 4.3 percent.
``These are pretty strong,'' Matthew DiFrisco, an analyst with Oppenheimer & Co. in New York, said in a telephone interview. ``They beat my expectations in all three regions pretty meaningfully.'' Difrisco said he was expecting same-store sales to rise 2.4 percent.
McDonald's gained $2.11, or 3.7 percent, to $59.06 at 10:36 a.m. in New York Stock Exchange composite trading. It was the biggest increase since Jan. 31. The shares have doubled since Skinner was named CEO in November 2004.
Europe is McDonald's biggest region by revenue, generating 42 percent of sales in the first quarter and 39 percent of operating profit. The U.S. generated 47 percent of profit.
Skinner has tried to bolster U.S. sales with the introduction of chicken sandwiches and biscuits in April to spur sales as Burger King Holdings Corp. and Wendy's International Inc. sold discount-priced burgers and breakfast fare for consumers pinched by rising fuel and grocery costs.
European Push
In Europe, McDonald's will push both lower-priced and premium products and emphasize profitable breakfast menus and drive-through restaurants, Jack Russo, an analyst with Edward Jones & Co., said in a May 29 note to clients.
``Our viewpoint on McDonald's is positive as U.S., European and Asian same-store sales have improved dramatically over the years,'' he said. McDonald's said April 22 that same-store sales growth in Europe was a major contributor to a 24 percent increase in first-quarter net income.
McDonald's had a 0.8 percent decline in U.S. same-store sales in March, the first drop in five years as consumers cut back on restaurant meals. A push into specialty coffee in the U.S. may spur revenue, and the rollout has already contributed 1 to 2 percentage points to same-store sales in test markets, Jason West, an analyst with Deutsche Bank AG, said in a May 20 report.
The chain started selling stronger coffee in 2006 to capture sales from Starbucks Corp., and plans to install counters selling cappuccino and lattes through 2009.
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