McDonald's Corporation (NYSE: MCD) reported February 8 that January systemwide sales increased 10%, based on a constant currency basis. 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.
January 2000 reported sales were $3.16 billion, compared with January 1999 sales of $2.94 billion, a 7% reported increase.
- In the U.S., January sales were $1.41 billion, compared with $1.33 billion last year, a 6% increase.
- In Europe, constant currency sales increased 10%. January's reported sales of $792.1 million were reduced significantly by the weaker Euro, compared with January 1999 sales of $797 million. However, since the Euro depreciated against the U.S. Dollar throughout 1999, we expect its negative impact to lessen throughout 2000.
- Asia/Pacific's constant currency sales increased 13% in January. Reported sales were $644.7 million compared with January 1999 sales of $541.6 million, an increase of 19%.
- Latin America's sales increased 12% on a constant currency basis in January. Reported sales were $152.3 million compared with $150 million in January 1999, up 2%.
- The Other segment reported a constant currency sales increase of 24%. Reported sales were $154.4 million compared with $120.5 million a year ago, up 28%.