050133 McDonald's December Same-Store Sales Up 4.9%January 18, 2005
Oak Brook, IL - McDonald's Corp. posted a 4.9% increase in systemwide same-store sales for December, down from the 7.3% growth pace it set in the same period a year earlier. In a press release Tuesday, the fast-food giant said December same-store sales in the U.S. grew 6.9%, compared with a 12.2% rise in December of last year. In Europe, same-store sales grew 2.2%, while same-store sales in Asia and the Middle East were up 3.3%. December systemwide sales grew 9.6%, or 5.9% when adjusted for currency translations. For the entire fourth quarter, same-store sales rose worldwide by 5.1% and total sales grew 9.5%, or 6% adjusted for currency translations. Fourth-quarter same-store sales in the U.S. rose 7.2%. Chief Executive James A. Skinner, who took over as chief executive in November after Charlie Bell resigned because of colon cancer, said in the release that each month of 2004 saw positive same-store sales growth, which the company hasn't accomplished since 1987. McDonald's also said it will modify its accounting treatment of leases and leasehold improvements, accelerating the recognition of rent expense for leases that include fixed rent escalations. The company doesn't expect the change to significantly affect its balance sheet or net income, and won't affect historical or future cash flows or the timing of payments under the related leases.
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