McDonald's Corp April global comparable sales rise 1.2 per cent; US flat

McDonald's Corp on Thursday reported an increase in global sales at established restaurants for April, with disappointing sales in Europe and flat business in the United States. The world's biggest restaurant chain by revenue said worldwide sales at restaurants open at least 13 months grew 1.2 per cent last month. That was in line with analysts' average estimate, according to Consensus Metrix.

The fast-food giant has struggled at home, due to sluggish job and wage growth, tougher competition from resurgent fast-food rivals and internal missteps that have complicated menus and slowed service. McDonald's has not reported a comparable sales gain since October in the United States, which generates 31 percent of revenue. Analysts polled by Consensus Metrix expected McDonald's April same-restaurant US sales to be down 0.1 per cent.

The company said in a statement that "industry dynamics remained challenging." Europe is the chain's top region, accounting for 40 percent of sales, but business there fell short of the mark. Comparable sales rose 0.3 per cent, well below the 1.9 per cent rise analysts expected. Asia comparable sales were up 2.9 per cent, better than the 1 per cent increase analysts expected.