000623 McDonald's January-May sales up 5%June 11, 2000Chicago - McDonald's Corp. said sales at all of its restaurants rose 5% from a year ago in the first five months of the year, showing a slowdown in the pace of sales growth seen earlier this year. The company which operates in 119 countries said excluding the effect of currencies, sales for the first five months of 2000 were $16.167 billion, a 7% increase compared with the same period last year. U.S. sales rose 2% to $7.863 billion. Sales in Europe were $3.847 billion, a constant currency increase of 10% and a reported decrease of 1%. Reported results were significantly reduced by the weaker euro, McDonald's said. The report pushed shares of Oak Brook, Illinois-based McDonald's down 9% to 32-1/4 in early afternoon trade on the New York Stock Exchange. “The market is looking at the reported number and seeing a decrease,” said Patrick Schumann, analyst with Edward Jones. “On face value, the numbers look a little weak.” In the first four months of the year, McDonald's total sales rose 7%, including the effects of currencies. U.S. sales increased 4% and European sales rose 2% in that period. Excluding currency effects, European sales rose 12% in January to April. Sales in McDonald's Asia-Pacific region in January through May were $2.915 billion, a constant currency increase of 10% and a reported increase of 16%. The reported increase benefited from the stronger Japanese yen. Latin America's sales in the five months were $723 million, an 11% constant currency increase and a 9% reported increase. Sales in the the company's other segment, which includes its non-hamburger restaurants like Chipotle Mexican Grill and Donatos Pizza, were $818 million, a constant currency increase of 20% and a reported increase of 22%. McDonald's has 28,000 restaurants that serve more than 43 million people a day.
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