Lisa Baertlein and Jessica Wohl report at ABC News that McDonald’s Corp said sales at established U.S. restaurants fell 0.1 percent in October, as expected, but its stock ticked up 1.5 percent after sales from the rest of the world buoyed overall results.
McDonald’s, which has been outperforming its peers, had signaled last month that U.S. October sales would be weak.
Analysts said that while the world’s largest hamburger chain is not invulnerable to price wars and rising unemployment it remains a strong competitor.
The dip in sales at U.S. restaurants open at least 13 months marked the first time McDonald’s same-store sales fell in its home market since March 2008, when such sales declined 0.8 percent.
Despite that, McDonald’s U.S. same-restaurant sales result still implies that it is gaining share since most of its peers are reporting more negative numbers, Oppenheimer analyst Matthew DiFrisco said.
And, McDonald’s overseas restaurants are still benefiting from remodeling, extended hours and other strategies that previously boosted U.S. sales, said Jefferies & Co analyst Jeff Farmer.
As a result, McDonald’s same-store sales rose 3.3 percent worldwide.
Closely watched same-store sales rose 6.4 percent in Europe, helped by Britain, France and Germany.
Comparable sales rose 4.7 percent in the company’s Asia Pacific, Middle East and Africa segment, driven by Japan and Australia.
U.S. A BATTLEFIELD
McDonald’s has been outperforming Wendy’s/Arby’s Group Inc , Burger King Holdings Inc and other chains in the United States by offering a variety of items, including some breakfast foods, on its popular Dollar Menu.
It has aggressively promoted its new coffee drinks and introduced pricier fare, such as a trio of Angus burgers, which sold well in the month.
But its rivals are stepping up with a broad range of inexpensive fare, including a new $1 double cheeseburger from Burger King, a new 99-cent menu from Dunkin Donuts and a value menu from Taco Bell that offers items for less than $1.
Read more at: ABC News