McDonald's Corp. said Monday that February sales at restaurants open more than a year jumped a better-than-expected 11.7 percent, boosted by growth in Europe, the weak dollar and the benefit of an extra selling day this year.
Two straight months of solid results to start the year have reassured investors worried about the impact of the economic slowdown on the world's largest fast-food chain, among other restaurant companies.
McDonald's shares increased $1.11, or 2.1 percent, to $53.38 in morning trading.
The leap year boosted same-store sales by about 4 percent last month, the Oak Brook-based company said.
Same-store sales in the U.S. rose 8.3 percent during the month ending Feb. 29, led by breakfast and coffee offerings. European same-store sales grew by an impressive 15.4 percent on strong results in the U.K., France, Germany and Russia.
Same-store sales in the Asia Pacific region, Middle East and Africa rose 10.9 percent for the month, mostly on strength in Australia, China and Japan.
Systemwide sales, which include restaurants owned by franchisees and affiliates operating under joint-venture agreements rose 13.2 percent in February.
Goldman Sachs analyst Steven Kron said McDonald's is well-positioned to navigate through economic challenges because of its tiered menu platform which offers a mix of value and more expensive new products.
Paul Westra of Cowen and Co. said he is hearing positive feedback from the rollout of McDonald's specialty coffees, now available in more than 1,000 U.S. restaurants en route to being in all of them by mid-2009.
"We strongly believe that February's solid results were positively impacted by the rollout of its two Southern-style chicken sandwiches (breakfast and lunch sandwiches) ahead of a likely spring 2008 media launch. This fact bodes well" for a strong second quarter, he said in a note to investors.
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