(MCD) McDonald’s Corporation’s Sales Barely Rise
McDonald’s Corporation’s (MCD) comparable sales for November 2009 showed sluggish growth of 0.7% as against a rise of 7.7% in the same month last year, exposing its sensitivity to rising unemployment, the economic downturn and the discount war among fast-food chains to lure consumers.
The company faces stiff competition from Burger King Holdings Inc. (BKC), Wendy’s/Arby’s Group, Inc. (WEN) and Yum! Brands Inc. (YUM). However, these quick-service operators are faring better than casual dining restaurant chains, such as Cosi Inc. (COSI) and Red Robin Gourmet Burgers Inc. (RRGB), as cash-strapped consumers are trading towards fast-food centers due to relatively cheap dining options.
System-wide sales at McDonald’s worldwide restaurants climbed 10.1% in November. However, in constant currencies, the rate of increase in system-wide sales dipped to 2.3%.
In the United States, comparable sales dropped for the second straight month. Comps dipped to 0.6% in November (versus a 4.5% increase last year for the comparable month) after falling 0.1% in October. However, the month’s result fared better than the overall quick-service restaurant industry. Value-menu items and premium menu options continued to support the month’s results.
In Europe, comparable sales climbed 2.5% in November (versus a 7.8% increase last year for the comparable month) fueled by strong performance in the U.K. and France, partially offset by performance in Germany. Sustained focus on fourth-tier items development, premium menu options, and daypart expansion contributed to sales.
Comparable sales in Asia/Pacific, Middle East and Africa (APMEA) dropped marginally by 1% in November (versus a 13.2% increase last year for the comparable month) reflecting weakness across Japan and China, but partly offset by Australia.
Zacks Investment Research
- (LTD) Limited Brands’ Comparable Store Sales RiseLimited Brands Inc. (LTD), a premier retail company, reported a 3% increase in comparable store...
- (MCD) McDonald’s Corporation Outdoing RivalsMcDonald’s Corporation’s (MCD) comparable sales for the month of October 2009 showed a sluggish growth...
- (WEN) Wendy’s-Arby’s Group Reports Earnings Meeting ConsensusWendy’s/Arby’s Group, Inc. (WEN), the third largest fast-food restaurant operator, recently reported third-quarter 2009 results....
- (BKC) Burger King’s Profit Slides Below EstimatesThe sluggish economy and rising unemployment continues to hurt Burger King Holdings Inc. (BKC) results....
- (MCD) McDonald’s Sales Growth Loses MomentumMcDonald’s Corporation’s (MCD) comparable sales growth lost momentum in the month of August 2009. After...
- ($MCD) McDonald’s Sales Grow – Analyst BlogDespite a sinking global economy, McDonald’s Corporation (MCD) continues to grow same-store sales while maintaining...
Search Posts by Tag: BKC | Burger King Holdings Inc. | COSI | Cosi Inc. | MCD | McDonald's Corporation | Red Robin Gourmet Burgers Inc. | RRGB | WEN | Wendy's-Arby's Group Inc | YUM | Yum! Brands Inc. | Restaurants | Services
RSS Feeds by Tag:
BKC | Burger King Holdings Inc. | COSI | Cosi Inc. | MCD | McDonald's Corporation | Red Robin Gourmet Burgers Inc. | RRGB | WEN | Wendy's-Arby's Group Inc | YUM | Yum! Brands Inc. | Restaurants | Services |
Other Posts by: vitalstocks | RSS Feed for this author