McDonald Corporation’s (NYSE:MCD) comparable sales are on the rise. Although diners are now more comfortable spending as the economy eases, but they are still seeking value menu offerings. The fast food restaurant operator has witnessed an uptrend across its domestic and international markets.

 Global comparable-store sales climbed 4.8% in May 2010 compared to an increase of 5.1% in the same month last year. McDonald’s stated that system-wide sales at worldwide restaurants surged 5.5% or 6.2% in constant currencies in the month under review.

The world’s largest hamburger chain, McDonald’s, said that the new menu offerings, which include value-based drinks, Shrek-themed Chicken McNuggets and addition of Frappes to its McCafe premium coffee line-up, along with Happy Meals promotion have helped boost the U.S. comparable-store sales. McDonald’s said that the U.S. comparable sales grew 3.4% in May (versus a 2.8% increase last year for the comparable month).

In Europe, comparable sales climbed 5.7% in May (versus a 7.6% increase last year for the comparable month) fueled by strong performance in the U.K., France, Germany and Russia . Sustained focus on four-tier menus, longer operating hours and the introduction of new products continued to drive gains.

 Comparable sales in Asia/Pacific, Middle East and Africa (APMEA) jumped 3.8% in May (versus a 6.4% rise last year for the comparable month) led by strong performance in Australia and China. Moreover, continued focus on core value menu offerings, and restaurant re-imaging program contributed to the performance.

 McDonald expects unfavorable foreign exchange rates primarily related to Euro, which denominates approximately 25% of its operating income, to negatively impact the net income per share for fiscal 2010, even though the currency impact in the second quarter is expected to be minimal or nil. This contrasts with the prior guidance of slightly beneficial currency impact for the fiscal year.

The company has approximately 45% of its debt denominated in foreign currencies to mitigate the impact of such fluctuations, thus we expect McDonald’s to face less volatility from exchange rates.

The Euro is trading weak against the US dollar on concerns over a widening European debt crisis that has negatively impacted financial markets and could restrict consumer spending.

McDonald’s closest competitor Burger King Holdings Inc. (NYSE:BKC) also announced recently that it expects unfavorable foreign exchange rates, primarily related to the Euro and British Pound, to impact earnings for the fourth quarter of 2010 by 1 to 2 cents per share. For the full year, currency exchange translation is expected to have a neutral to a slightly negative effect on earnings.