By Phil Wahba
NEW YORK (Reuters) - Summer drinks in the United States and longer hours in Europe helped McDonald's Corp
McDonald's said global sales at restaurants open at least 13 months rose 7 percent in July, compared with analysts' expectations for an increase closer to 5 percent.
U.S. sales, which account for about 35 percent of the company's business, benefited from the Real Fruit Smoothies and Frappes from its McCafe line of drinks.
A record-setting heat wave in parts of the country and an extra Saturday in July helped fuel the 5.7 percent rise in U.S. same-restaurant sales, said Edward Jones analyst Jack Russo.
In addition to its new drinks, McDonald's has benefited from its appeal to families and retirees, making it less vulnerable to high U.S. unemployment rates. That has helped it steal market share from chains like Burger King
"The combination of affordable value and convenient locations is tough to beat," Russo said.
Shares in McDonald's rose 1.6 percent to $72.87 and were up earlier in the session to $73.33, an all-time high. Burger King rose 0.6 percent while Yum gained 1.6 percent.
EUROPE, ASIA ON THE RISE
In Europe, same-restaurant sales rose 5.3 percent, led by gains in France, Britain and Germany. McDonald's has been renovating restaurants and extending hours in the region, which was the largest revenue contributor last year at 41 percent.
Same-store sales rose 10.1 percent in the Asia/Pacific, Middle East and Africa area. The company said Japan, Australia and China were standouts. Nearly 8,500 of McDonald's 32,500 restaurants are located in that region, which contributed nearly 20 percent of its revenue in 2009.
McDonald's plans to double its China network to more than 2,000 outlets by 2013.
Systemwide sales rose 6.8 percent, or 8.3 percent on a constant currency basis.
(Reporting by Phil Wahba, editing by Michele Gershberg, Dave Zimmerman and Robert MacMillan)
