McDonald's sales growth slows
Strong demand in Europe and Asia pushes same-store sales up 5.1% in May, but that's below April's 6.9% increase.
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CHICAGO (Reuters) -- McDonald's Corp. on Monday reported a 5.1% increase in May sales at restaurants open at least 13 months, with demand strong in Europe and Asia/Pacific.
However, the growth was down from April, when global same-store sales rose 6.9%. McDonald's (MCD, Fortune 500) shares fell 2% in early trading.
May same-restaurant sales were up 2.8% in the United States, helped by new coffee drinks and snacks. That was significantly slower than the 6.1% growth in April.
The world's largest hamburger chain is one of the restaurant industry's top performers largely because its Dollar Menu has been attracting diners amid a lengthy recession that has sent unemployment sharply higher.
The stronger dollar -- which lessens the dollar value of overseas sales -- led to an overall 0.4% decline at worldwide McDonald's restaurants, the company said. Sales rose 7% in constant currencies.
Fast-food restaurants generally have held up better in a tough economy than higher-priced sit-down restaurants.
McDonald's May same-store sales increased 7.6% in Europe, and 6.4% in the company's Asia/Pacific, Middle East and Africa segment. In April, same-store sales in the two regions were up 8.4% and 6.5%, respectively.
McDonald's said the hit by the foreign exchange rates, if they remain around current levels, is expected to be 8 cents to 9 cents a share in the second quarter and about 20 cents for the year.
The company also said second-quarter results, which it is scheduled to report on July 23, are expected to include 2 cents to 3 cents a share of income due to a license deal in Indonesia and the sale of Redbox Automated Retail.
Its shares fell $2.08, or 3.3 %, to $57.80 in early trading on the New York Stock Exchange. 
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