Cheap eats help McDonald’s boost sales

Thanks to cheap eats and new food items, McDonald's was able to boost a key sales figure in May, bouncing back from a decline in the previous month.

The world's biggest hamburger chain said yesterday, that global sales were up 2.6 per cent at restaurants open at least a year, helped by an extra Friday in the month. In the US, the figure was up 2.4 per cent, with the Dollar Menu with its new chicken wraps and egg white breakfast sandwiches lifting results.

The figure was up 2 per cent in Europe, with declines in Germany and France offset by strong UK and Russia results.

The figure was up 0.9 per cent in the region encompassing Asia, the Middle East and Africa. The company, with over 34,000 restaurants around the world, noted that results in China were negative due to avian flu fears.

Oak Brook, Illinois-based McDonald's, had been struggling to increase sales as it faced changing eating habits and weak growth across the broader restaurant industry. The company, late last year reported a decline in the monthly sales figure for the first time in nearly a decade. Soon after, the company ousted the head of its US division as it renewed its focus on value and refreshing its menu.

The company this year, tried to lure customers in the US with several new items including chicken McWraps, different kinds of Quarter Pounder burgers and an egg-white sandwich. According to chief executive officer Don Thompson, the chain was doing ''more aggressive'' advertising focused on the menu. The increased US sales marked an improvement from five straight months of sales drops or gains of less than 1 per cent.

The company said in a statement that US sales were helped by breakfast, chicken items and ''everyday value.'' Sales in May were also fueled by the new egg-white breakfast sandwich and Premium McWraps.

McDonald shares closed up 1.3 per cent to $99.53 in New York. The shares had gained 13 per cent this year, even as the Dow Jones Industrial Average gained 16 per cent.