McDonald's Reports Better-Than-Expected Global Comps In April

McDonald's Corporation MCD on Friday reported its global comparable-store sales fell 0.6 percent in April, exceeding the 1.8 percent decline analysts were expecting. By region, U.S. comparable sales fell 2.3 percent, Europe comparable sales rose 1 percent while Asia/Pacific Middle East and Africa (APMEA) comparable sales fell 3.8 percent. "Earlier this week, we announced the initial steps in McDonald's business turnaround plan," said Steve Easterbrook, President and Chief Executive Officer in a press release. "We are moving quickly to deliver a better experience to our customers and to realize our vision to become a modern, progressive burger company. While our current performance reflects the significant work ahead, I am confident that we've taken the first critical steps toward positioning the company for long-term profitable growth." Shares traded recently at $98.24, up 1.5 percent. McDonald's noted its declining comparable sales in the U.S. was attributed towards "ongoing competitive activity" and "negative customer traffic." The company stated that it is looking to leverage its decentralized operating structure, simplify its menu and improve its image with consumers to deliver "value initiatives and menu offerings that resonate with the local markets." Europe's comparable sales gain was due to "solid" results in the United Kingdom and Germany. The gains were partly offset by negative performances in France and Russia. Looking forward, the company will continue to identify opportunities to enhance its promotional menu options and build on its value, breakfast and family business. Finally, APMEA's comparable sales decline was attributed towards continued challenges in Japan which were partly offset by "strong" results in Australia and other markets.