McDonald’s Corporation (NYSE: MCD) reported March 10 that Systemwide sales for the first two months of 2000 were $6.169 billion, an 11 percent increase on a constant currency basis, compared with the same period last year, excluding the effect of foreign currency translation, except for hyperinflationary economies. Reported year-to-date sales increased nine percent over 1999.
- In the U.S., year-to-date sales were $2.854 billion, a six percent increase.
- In Europe, sales were $1.545 billion, a constant currency increase of 14 percent year-to-date and a reported increase of three percent. The reported increase was reduced significantly by the weaker Euro. However, since the Euro depreciated against the US Dollar throughout 1999, we expect its negative impact to lessen throughout 2000.
- Asia/Pacific’s sales were $1.178 billion, a constant currency increase of 12 percent and a reported increase of 17 percent year-to-date.
- Latin America’s sales were $289 million, a 14 percent constant currency increase and a nine percent reported increase year-to-date.
- Sales in the Other segment were $303 million, a constant currency increase of 26 percent and a reported increase of 29 percent year-to-date.
- All segments benefited from the extra day in February 2000, a leap 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 US Dollar.
