McDonald’s reported relatively flat like-for like sales both in the UK and internationally with just 1% growth for the second quarter up to June 30, 2014.
The UK delivered “solid comparable sales and operating income results for the quarter”, as did France. However across Europe like-for-like sales declined 1% and operating income was flat in the quarter.
Globally, like-for-like revenue grew to $7,182m (£4,211m) from $7,084m (£4,153m) in Q2 2013; while operating income was flat at $2,189m (£1,283m) from $2,198m (£1,288m) and the net income was 1% lower at $1,387m (£813m) from $1,397m (£819m).
For the six-month period ending 30 June, like-for-like operating income fell 1% to $4,125m from $4,147m (£2,431m) in 2013.While total revenue for the six month period grew by 1% from $13,689m (£8,025m) to $13,882m (£8,138m).
The performance was supported by both premium and core menu offers as well as the roll-out of blended ice drinks in several markets during this quarter.
Don Thompson president and CEO said: “Overall, 2014 is a year of strengthening the foundational elements of our business that are critical to enabling and advancing our longer-term strategies. Heading into 2014, we acknowledged that we did not expect any material changes to the operating environment this year.
“As such, full year 2014 global comparable sales are expected to be relatively similar to year-to-date June performance, with July global comparable sales expected to be negative. While near-term results are expected to remain muted, sizable growth opportunities remain, and we are committed to pursuing these opportunities through continuous improvement in everything we do”
Thompson said the company will reignite momentum over the next 18 months by focusing its efforts on “compelling value, marketing and operations excellence to become a more relevant and trusted brand.”
The company returned $1.6bn (£900m) to shareholders through dividends and share repurchases, in connection with its three-year cash return target.
