McDonald's Corporation has announced results for the third quarter ended 30 September 2017, showing global comparable sales increased by 6%, reflecting positive guest counts in all segments.
Due to the impact of the company's strategic refranchising initiative, consolidated revenues decreased by 10% (12% in constant currencies). Systemwide sales increased by 7% in constant currencies, due to strong comparable sales performance and restaurant expansion.
In the US, third quarter comparable sales increased by 4.1%, reflecting the national beverage and McPick 2 value promotions, along with the continued success of the Signature Crafted premium sandwich platform. Operating income for the quarter rose by 6%, reflecting higher sales-driven franchised margin dollars and G&A savings.
Comparable sales for the International Lead segment increased by 5.7% for the quarter, led by continued momentum in the UK and Canada, as well as positive results across all other markets. The segment's operating income rose by 21% (17% in constant currencies), fuelled by sales-driven improvements in franchised margin dollars.
President and CEO Steve Easterbrook (pictured) said, 'We are serving more customers, more often by offering great tasting food at a good value with the quick service and friendly hospitality they expect from McDonald's. Our positive comparable sales and guest counts across all of our operating segments during the third quarter demonstrate broad-based momentum throughout our business that builds upon our strong first half of 2017.'
Chief Financial Officer, Kevin Ozan said, 'During the quarter, we refranchised our businesses in China and Hong Kong, reaching our target to refranchise 4,000 restaurants more than a year ahead of schedule. Completing this transaction brings us closer to the customers and communities we serve in these markets and creates a better opportunity to unlock their full growth potential. Our more heavily franchised structure will continue to drive shareholder value by providing a more stable revenue and income stream with higher returns on invested capital.'
Easterbrook concluded, 'Our Velocity Growth Plan is the right strategy for McDonald's to achieve long-term, profitable growth and we are on track to succeed with our commitment and focus on execution. We've made progress in many areas of our business already, including optimizing our restaurant ownership mix and running better restaurants. At the same time, we also are making strides with initiatives such as delivery, mobile order and pay, as well as the Experience of the Future transformation of our restaurants that will make the experience more convenient, personalized and enjoyable for our customers.'