Performance by segment was:
U.S. down 0.1%
Europe down 0.6%
Asia/Pacific, Middle East and Africa down 1.5%
But McDonald’s £10M ad campaign called dubbed ‘We all make the games’, aimed at showing how British consumers are celebrating the games at home, helped secure ‘strong’ sales in UK for the month.
Alistair Macrow, McDonald’s UK vice president of marketing, said before the games: “Putting user-generated content front and centre of our Olympic advertising has really enlivened the campaign and given the British public the chance to lead the way in celebrating this monumental summer of sport.”
On the global downturn, chief executive officer Don Thompson said: "We are committed to driving the business over the long-term by executing our proven ‘Plan to Win’ strategy, despite softer global comparable sales in July.
"Our leadership team has the experience to effectively manage through the challenging environment and build sales and market share. As a system, we remain focused on providing high quality, affordable meal options, unparalleled convenience and a great McDonald's experience to the 69 million customers we serve each day."
In July, US comparable sales were relatively flat as the promotional activity did not offset the effects of the sluggish economy and last year's launch of the Mango Pineapple smoothie. Customers' ongoing appetite for McDonald's breakfast and the McCafe Frappe line-up supported the month's results.
The company said in a statement that the US is focused on driving results by providing a well-balanced combination of value, variety and innovation across the menu.
Europe reported a 0.6% decline in comparable sales for July as strong results in the UK and Russia were more than offset by weaker performance in Germany and several Southern European markets amidst an increasingly difficult environment. Europe's priority remains building guest traffic by featuring enhanced everyday value offerings alongside classic core favourites and appealing premium products.
Asia/Pacific, Middle East and Africa reported a comparable sales decrease of 1.5% for July. Positive results in Australia were more than offset by ongoing weakness in Japan and the negative impact from the shift in timing of Ramadan. Throughout the segment, compelling day-part value platforms and market-leading conveniences continue to differentiate McDonald's in the region.
System-wide sales for the month decreased 3.2%, or increased 2.3% in constant currencies.
Thompson concluded, "I am confident that McDonald's will continue to succeed as we execute against our three global priorities of optimising the menu, modernising the experience and broadening accessibility to our brand."