McDonald’s | First Quarter 2022

Global like-for-likes up 11.8%

"I am proud to share that once again the Arches have shone brightly," said McDonald's President and Chief Executive Officer, Chris Kempczinski, refering to the company's first quarter results.
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"I am proud to share that once again the Arches have shone brightly," said McDonald's President and Chief Executive Officer, Chris Kempczinski, refering to the company's first quarter results.

McDonald’s reports an increase of global comparable sales of 11.8% for the first quarter ending 31 March 2022. The International Operated Markets segment recorded the highest increase with 20.4 %, led by strong comparable sales in France and the U.K. The U.S. market increased 3.5%.

Sales via digital channels are also becoming increasingly strong. In the top 6 markets (USA, Australia, France, Germany, Canada, UK), digital sales already account for more than 30 percent of total sales. In absolute terms, this means that worldwide, more than 5 billion dollars have been generated through digital channels.

"In a quarter that saw an increasingly complex and uncertain operating environment, I am proud to share that once again the Arches have shone brightly," said McDonald's President and Chief Executive Officer, Chris Kempczinski. "Our strong performance in the first quarter was underpinned by global comparable sales up nearly 12%, reflecting broad-based momentum across all segments. In most of our major markets, we sustained QSR traffic share gains by focusing on elevating our brand, accelerating digital channels and showcasing our core equities of chicken and beef. By staying on the side of the consumer and executing our strategy, Accelerating the Arches, we have continued to drive growth. It is why I believe there has never been a better time to be part of brand McDonald's."

Global comparable sales increased 11.8%, reflecting positive comparable sales across all segments: U.S. increased 3.5%, International Operated Markets segment increased 20.4% and International Developmental Licensed Markets segment increased 14.7%. Consolidated revenues increased 11% (14% in constant currencies) while systemwide sales increased 10% (14% in constant currencies).

Russian business shut down

The Company temporarily suspended operations during the quarter in Russia and Ukraine as a result of the military conflict in the region. Results included $27 million of costs related to the continuation of employee salaries, lease and supplier payments, as well as $100 million of costs for inventory in the Company's supply chain that likely will be disposed of due to restaurants being temporarily closed. Excluding these current year costs and prior year strategic gains of $135 million, primarily related to the sale of McDonald's Japan stock, consolidated operating income increased 14% (18% in constant currencies).

According to the company’s statement, comparable sales growth in the U.S. was driven by strategic menu price increases, strong marketing promotions featuring the core menu and growth in digital channels, which continued to benefit from the prior year launch of the Company's loyalty program –"MyMcDonald's Rewards."

Strong operating performance and the continued reduction of COVID-related government restrictions in most markets drove positive comparable sales across the International Operated Markets, led by strong comparable sales in France and the U.K.

International Developmental Licensed Markets: The quarter reflected strong comparable sales driven by Japan and Brazil, partly offset by negative comparable sales in China due to continued COVID-19 resurgences and related government restrictions.

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