New menu additions drive McDonald’s to first quarter sales growth
McDonald’s served up meaty sales growth in the first quarter, as it was buoyed in the UK by the launch of its Big Mac with bacon.
The global burger chain saw comparable global sales jump 5.4% as it hailed “strong comparable” figures across each of its regions.
In the UK, the fast food giant reported a “very strong start to the year”, on the back of successful launches for its veggie wrap and Big Mac with bacon.
Paul Pomroy, McDonald’s UK and Ireland chief executive, said the launches drove sales in March which “broke all records”.
He said: “We know it is tough on the high street, but we are clear that, alongside our franchisees, we need to maintain investment to succeed.
“Customers enjoy the choice and value we offer, but changing times mean they also demand ultimate convenience, so they can enjoy our menu whenever and wherever they want.
“We continue to invest in our people and in transforming our high street estate, at the same time as investing in digital innovation.”
Nearly one in ten of sales over the three-month period were through the MyMcDonald’s app and its delivery service, the company said.
It also saw significant growth in coffee sales, which jumped 8% year-on-year following a major marketing campaign and the launch of its iced latte.
Total global revenues declined 4% to five billion US dollars (£3.8 billion) and operating income declined 2% to 2.1 billion US dollars (£1.6 billion) as it was impacted by franchising changes and unfavourable currency movements.
In its core US market, same store sales jumped 4.5% as it was boosted by promotions and new menu additions.
McDonald’s president and chief executive Steve Easterbrook said: “We started the year strong with our 15th consecutive quarter of positive global comparable sales, reflecting continued broad-based momentum across each of our global segments.”
Hargreaves Lansdown equity analyst George Salmon said: “CEO Steve Easterbrook has done a good job of getting the customers back.
“His simple strategy to focus on upgrading the menu, roll out delivery services and engage with partners to improve the in-store experience has so far proven a recipe for success.”