McDonald's announces rise in global sales

McDonald's have announced an increase in global sales of 4.4% for the final quarter of last year up to December 31.

McDonald's President and Chief Executive Officer Steve Easterbrook said the fast-food chain's performance in 2018 was strong.

He said: "We continued to transform our business by making substantial progress on modernising our restaurants and offering more convenience, choice and value to our customers.

"We've now achieved 14 consecutive quarters of positive global comparable sales and our customers rewarded us with more visits in 2018, helping us to achieve two consecutive years of global guest count growth for the first time since 2012."

The fast-food retailer said they also had a strong year in Ireland and the UK.

Paul Pomroy, Chief Executive of McDonald’s UK and Ireland, said: “In Ireland, we have continued to invest in our restaurants, our people and support our local suppliers, remaining committed to Irish agriculture.

"In partnership with our franchisees we continue to transform our restaurants through our ‘Experience of the Future Programme’ - 29 of our restaurants were modernised to now offer table service and self-order screens as well changes to our kitchens so that every order is made fresh.

"We’ve also continued to focus on convenience, launching McDelivery in Ireland in November, which is already proving very popular with our customers and contributing to our success.”

“There are now 92 McDonald’s restaurants in Ireland, employing over 5,500 people.

“Looking to the future in Ireland, we have no intention of slowing down and will continue to invest in the customer experience and our people. Our growth to date is also allowing us to accelerate our openings, creating more opportunities for our franchisees and more jobs in communities across both markets.

“We knew 2018 would be tough with very difficult trading conditions, and low consumer confidence, but when I reflect on our year, it’s with enormous pride.”

Fourth quarter highlights:
• Global comparable sales increased 4.4%, reflecting positive comparable sales across all segments.
• Due to the impact of the Company's strategic refranchising initiative, consolidated revenues decreased 3% (flat in constant currencies).
• Systemwide sales increased 5% in constant currencies.
• Consolidated operating income decreased 7% (4% in constant currencies) primarily due to non-cash impairment charges. Excluding these charges, consolidated operating income was flat (increased 3% in constant currencies).
• Diluted earnings per share was $1.82, reflecting non-cash impairment charges of $0.18 per share, partly offset by an income tax benefit of $0.03 per share associated with the final 2018 adjustments to the provisional amounts recorded in the prior year under the Tax Cuts and Jobs Act of 2017 ("Tax Act"). Excluding these items, diluted earnings per share was $1.97, an increase of 15% (18% in constant currencies) over prior year earnings per share (excluding $0.84 per share of prior year net tax cost under the Tax Act).