McDonald’s posts surprise sales gain

CHICAGO — McDonald’s Corp. posted a surprise gain in U.S. same-store sales last month after a decline in October as the world’s largest restaurant chain increased advertising for less expensive items.

Sales in the United States increased 2.5 percent in November, the Oak Brook, Ill.-based company said Monday in a statement. Analysts projected a drop of 0.6 percent, the average of 14 estimates compiled by Consensus Metrix. Global sales rose 2.4 percent while analysts anticipated a gain of 0.2 percent.

McDonald’s, which has about 14,100 U.S. stores, has been pushing its Dollar Menu to attract budget-minded Americans. The Big Mac seller, which named Don Thompson chief executive officer in July, is trying to keep pace with Burger King Worldwide Inc. and Yum Brands Inc.’s Taco Bell, which have been promoting new food and value items this year.

“You saw McDonald’s going on TV and pushing a lot more value” in the U.S. last month, Peter Saleh, a New York-based analyst at Telsey Advisory Group, said in an interview. “The numbers in the U.S. were particularly strong.”

McDonald’s rose 1.1 percent to $89.41 at the close in New York. The shares have fallen 11 percent this year.

In November, U.S. sales were fueled by breakfast and value items, as well as the chain’s new Chedder Bacon Onion sandwiches, McDonald’s said in the statement. Thompson has said the company will have a stronger new menu presence next year compared with 2012.

Sales increased 1.4 percent in Europe and rose 0.6 percent in Asia, Africa and the Middle East. Analysts projected a gain of 0.1 percent and a drop of 0.9 percent, respectively, according to a survey by Consensus Metrix, a researcher owned by Wayne, New Jersey-based Kaul Advisory Group.

McDonald’s October comparable-store sales fell 1.8 percent globally, the first monthly decline in nine years. Sales at U.S. locations slid 2.2 percent that month.

Saleh said the company’s focus on its Dollar Menu is “not good news for margin.”

McDonald’s U.S. company-owned restaurant margin narrowed to 19.8 percent in the three months ended Sept. 30 from 21.1 percent a year earlier, according to company filings.

Same-store sales fell 3.1 percent in Japan last month. Comparable, or same-store, sales are considered an indicator of a company’s growth because they include only older restaurants.

There are more than 34,000 McDonald’s restaurants worldwide, about 80 percent of which are franchised.

More in Herald Business Journal

Aerospace workers adjust to changing industry

The number of Boeing workers dropped almost 10 percent since last year.

Tom Hoban
Are millennials warming up to life in suburbia?

They dominate the apartment market and their wants need to be accounted for, says columnist Tom Hoban.

Camano artist mixes flask, paintings for successful cocktail

Art flasks prove popular as bachelorette gifts, birthday presents and wedding favors.

Fluke’s T6 Electrical Testers receives Innovation Awards honor

Fluke’s T6 Electrical Testers have received top honors in the Tools and… Continue reading

Everett volunteer named ‘community champion’ by Molina Healthcare

Everett’s Jorge Galindo was one of seven people across the state to… Continue reading

Cascade Valley Health to hold Festival of Trees in Arlington

Cascade Valley Health Foundation will be holding their fifth annual Festival of… Continue reading

7-Eleven program helped add 500 trees, shrubs to Everett park

Last month, 7-Eleven helped plant more than 500 trees and shrubs at… Continue reading

Pentagon inspector general praises secret $80 billion bomber

US Government Accountability Office in 2016 rejected a protest filed by Boeing-Lockheed Martin.

Everett’s Sentry Credit celebrates a quarter century in business

Sentry Credit Inc. in Everett is celebrating its 25th year in business.… Continue reading

Most Read