McDonald's July Sales Up 6.5%, Boosted By Far East, Europe

With sales in Asia leading the way, McDonald's Wednesday reported a 6.5% increase in global comparable sales in July.

Up by an astounding 9.9%, comp sales in Asia/Pacific, Middle East and Africa were driven by shrimp pasta salad sales in Japan and fish sandwiches and McFlurries in China, where the fast-food giant recently raised the wages of the burger flippers as it polishes its image for the 2008 Olympics in Beijing.

Comp sales in Europe were up 7.7%, and U.S. comp sales rose 4.3%.

Stateside, McDonald's threw Chipotle BBQ chicken snack wraps into the mix as well as iced coffees to get consumers to visit the eateries between their three squares--although Heidi Barker, a company spokesperson, told Marketing Daily, "it's not one single product nor one single aspect that is driving McDonald's success."

In May, McDonald's CEO Jim Skinner told shareholders to expect that a "robust pipeline" of new foods and beverages will extend four years of sales gains.

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Breakfast sales also helped in the U.S., where McDonald's introduced cinnamon rolls after it added a stronger coffee blend last year to compete with Starbucks Corp. McDonald's also expanded sales of sweet iced tea and iced coffee.

"We're really connecting with our customers, and that goes well beyond our popular breakfast menu or other great items like the Snack Wrap," says Barker. "Our continued strong performance reflects McDonald's commitment to convenience. That means offering extended hours, clean, comfortable and contemporary settings, and affordable, great-tasting food at our restaurants around the world."

McDonald's has reportedly been testing sandwiches and biscuits made from pressure-fried chicken, burgers made from Angus beef and four flavors of iced coffe-- and may be readying them for national rollouts, although the company is mum on that.

In China, where McDonald's has 800 restaurants, the company announced this week that it will speed up what it called a planned wage hike after a labor union accused it and Yum Brands (KFC, Pizza Hut) of paying part-time employees less than minimum wage. Now, part-time workers will get 30% more yuan in their paychecks. Full-time employees can expect a 21% raise.

Also on Wednesday, McDonald's announced the launch of "McDonald's Champion Kids," which will bring 300 kids from around the world to the games next year in Beijing.

Six-time Olympic gold medalist Michael Phelps will serve as McDonald's global ambassador for the program. He and Olympic Committee and local dignitaries will kick off the program today in Beijing.

About the 300 children, McDonald's Global CMO Mary Dillon said, in a release: "These kids will reach out to thousands more, connecting with their worldwide peers to communicate the sights and sounds of the Olympic Games and the fascinating culture of China."

In addition, McDonald's will be the Official Restaurant of the Olympic Games for the seventh year in a row and plans to build four restaurants in the capital city.

One restaurant will be in the Athlete's Village, where McDonald's will be the only branded restaurant to feed the athletes. The three others will serve spectators, officials and coaches, as well as the 20,000 members of the media expected on site.

Staffing those restaurants will be 1,500 of the best of McDonald's restaurant crews from China and around the world.

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