McDonald’s reports slightly higher domestic, global same-store sales in July
Oak Brook, Ill. – Despite declines in European and Asia-Pacific/Middle East/Africa (APMEA) same-store sales, positive domestic same-store sales performance in July resulted in a small global increase for McDonald’s Corporation. The fast-food giant reported 1.6% domestic same-store sales growth compared to July 2012 as well as 1.9% declines in both Europe and APMEA same-store sales, averaging out to a 0.7% global increase.
McDonald’s attributed the rise in U.S. same-store sales to performance of its breakfast, classic core menu items and everyday value offerings. In addition, the company said the 21st edition of Monopoly at McDonald’s and the popularity of featured products including Premium McWraps, the Big Mac and Chicken McNuggets also contributed to the month’s performance.
In Europe, July’s comparable sales declined 1.9% as negative performance in Germany, France and other Southern Europe markets more than offset positive results in the U.K. and Russia. Throughout the segment, McDonald’s said its markets continue to evaluate and adjust key value and daypart options in response to local consumer dynamics.
Meanwhile, In July, APMEA’s comparable sales declined 1.9%, reflecting negative results in Japan, Australia and China. The shift in timing of Ramadan between years also negatively impacted the month’s results. To enhance performance, markets across APMEA are offering limited-time menu choices, leveraging daypart platforms and highlighting McDonald’s price and convenience.
"McDonald’s Plan to Win and our three global growth priorities to optimize the menu, modernize the customer experience and broaden accessibility to brand McDonald’s continue to serve as our strategic roadmap — keeping us focused on delivering great-tasting, affordable meals in modern restaurants," said president and CEO Don Thompson. "In July, we delivered modest global comparable sales growth, relatively in-line with our expectations. Looking ahead, we remain focused on building market share and strengthening our position as our customers’ favorite place and way to eat and drink."
Campbell acquires snacks group, expands global footprint
CAMDEN, N.J. — Campbell Soup Company continues expanding its brands portfolio with its acquisition of Kelsen Group A/S, a producer of baked snacks, including the Kjeldsens and Royal Dansk brands, sold in 85 countries around the world.
Based in Nørre Snede, Denmark, Kelsen is a market leader in the assortment segment of the sweet biscuits category in China and Hong Kong, where growth in sweet biscuits is outpacing the growth of the $60 billion global sweet biscuits market.
Campbell will operate Kelsen as a standalone business, reporting to Luca Mignini, president of Campbell International. Senior members of Kelsen’s management team, including Brian Rønsholdt, CEO of Kelsen Group, will continue to lead the business.
“We are excited to bring Kelsen’s talented team and distinctive brands to Campbell. The acquisition of Kelsen, with its strong brand awareness in China and Hong Kong, is an ideal complement to Campbell’s global baked snack businesses and a platform for additional growth for Campbell in key emerging markets,” said Mignini.
Campbell Soup Company is a manufacturer and marketer of soup and sauces, snacks and healthy beverages. Founded in 1869, the company has a portfolio of brands that include Campbell’s, Pepperidge Farm, Arnott’s, V8, Bolthouse Farms and Plum Organics — the latter which it acquired just a couple of months ago.
Aeropostale predicts wider Q2 loss based on slumping sales
New York – As a result of slumping net and same-store sales, Aeropostale is forecasting a net loss per share of between 42 cents and 44 cents during the second fiscal quarter of this year, which is 19 cents higher than the previously issued guidance. The revised estimate is based on a 6% decrease in net sales to $454 million, from $485.3 million in the year ago period.
Same-store sales, including the e-commerce channel, for the second quarter decreased by 15%. In addition, Aeropostale cited lower-than-expected income tax benefit due to a change in the estimated effective tax rate to 25% from 45% resulting from lower taxable income; an after-tax charge resulting from store asset impairment charges; and an after-tax charge as a result of the accounting effect related to retirement features of its stock based compensation plan.
“During the second quarter, we continued to experience the challenging trends we faced in the first quarter,” said Thomas P. Johnson, CEO. “Our performance was driven by an increase in promotional activity as we navigated through balancing our assortment, weak traffic trends and a challenging retail environment, particularly during the July selling period. As we reposition the Aeropostale brand, we believe our current merchandise assortment is more fashionable and relevant. Our entire organization is focused intently on accelerating customer adoption and regaining market share.”