McDonald's May same-store sales rise 5.1%

OAK BROOK, Ill. -- 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 U.S. 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.

Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance because they measure growth at existing stores rather than newly opened ones.

McDonald's said the hit by the foreign exchange rates, if they remain around current levels, is expected to be between 8 and 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 between 2 and 3 cents a share of income due to a license deal in Indonesia and the sale of Redbox Automated Retail.