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McDonald's global May same-store sales up 5.1%

McDonald's Corp reported a 5.1% increase in May sales at restaurants open at least 13 months, on strong demand in Europe and Asia/Pacific.

May same-restaurant sales were up 2.8% in the United States, helped by new coffee drinks and snacks.

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 US 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.

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. (Reuters)