McDonald’s Corporation (NYSE: MCD) reported April 12 that Systemwide sales for the first three months of 2000 were $9.507 billion, a nine percent increase on a constant currency basis compared with the same period last year.Information in constant currencies excludes the effect of foreign currency translation on reported results, except for hyperinflationary economies, such as Russia, whose functional currency is the U.S. Dollar. Reported year-to-date sales increased eight percent over the first quarter of 1999. Segment details of year-to-date 2000 sales compared with the same period of 1999 are as follows:
- In the U.S., sales were $4.505 billion, a five percent increase.
- In Europe, sales were $2.306 billion, a constant currency increase of 12 percent and a reported increase of two percent. The reported increase was reduced significantly by the weaker Euro. However, since the Euro depreciated against the U.S. Dollar throughout 1999, we expect its negative impact to lessen throughout 2000 based on current exchange rates.
- Asia/Pacific’s sales were $1.786 billion, a constant currency increase of 12 percent and a reported increase of 18 percent. The reported increase benefited from the strengthening Japanese Yen.
- Latin America’s sales were $434 million, a 12 percent constant currency increase and a 10 percent reported increase.
- Sales in the Other segment were $476 million, a constant currency increase of 25 percent and a reported increase of 28 percent.
