McDonald’s UK sees uplift in like-for-like sales

McDonald’s UK has seen an uplift in like-for-like (lfl) sales, which were positive throughout Q4, reversing the trend seen in the previous quarter.

During the group’s investor conference call for the fourth quarter ended 31 December 2020, Kevin Ozan, chief financial officer, McDonald’s Corporation, said the UK had achieved comparable sales growth every month since August despite the increased restrictions reintroduced in early November.

He said the quarter benefited from a focus on core menu items as well as “phenomenal growth” in delivery, with the UK seeing more than 20% of its sales from delivery in Q4.

The global fast-food giant said it delivered its strongest quarter of the year, ended 31 December 2020, recovering nearly 99% of Q4 2019 global lfl sales. Although improved on the prior quarter, Q4 saw global lfls down 1.3%.

US lfls were up 5.5% in the fourth quarter, and +0.4% for the year, but its International Operated Segment – which includes the UK – and International Licensed segment saw lfls down 7.4% and 3.6% respectively.

Consolidated revenues decreased by 2% (3% in constant currencies), while systemwide sales increased by 1% (flat in constant currencies).

For the full year, global lfls declined by 7.7%, while consolidated revenues decreased by 10% and systemwide sales by 7%.

McDonald’s president and chief executive officer Chris Kempcinzski, said 2020 would be remembered as “one of McDonald’s most challenging, yet inspiring, moments in our long history”.

“Against an uncertain backdrop, we are committed to staying true to our values and our brand purpose to feed and foster communities. By investing for the future and leveraging competitive strengths within our Accelerating the Arches strategy in drive-thru, delivery, and our growing digital presence, we’re confident we can continue to capture market share and drive long-term sustainable growth for all stakeholders,” said Kempcinzski.