OAK BROOK Ill. McDonald’s domestic same-store sales for October, while down a slight 0.1 percent compared with a year earlier, still fared better than many analysts predicted after the company tempered expectations late last month in an investor conference call.
The monthly dip in same-store sales marks McDonald's first negative U.S. result since March 2008. Global same-store sales rose 3.3 percent in October, the company said.
McDonald's executives had cautioned investors during an Oct. 22 quarterly earnings conference call that domestic same-store sales in October would be flat to slightly negative, due in large part to difficult comparisons to year-earlier figures as well as some unseasonably cold weather early in the month. In October 2008, McDonald's global same-store sales rose 8.2 percent, which included a 5.3-percent jump in its U.S. restaurants.
However, the company pointed out that its U.S. same-store sales continue to outpace the quick-service industry. While competitors like Carl's Jr., Hardee's and Wendy's have introduced new burgers to compete with McDonald's various products, the Oak Brook-based segment leader showed that its barbell menu strategy stabilized sales in the United States. Officials said strong sales from the Dollar Menu, the line of premium Angus Third Pounder burgers and the McCafe premium-coffee menu contributed to the results.
Last week, the parent companies of Burger King and Wendy's reported results for their September-ended quarters, which included a 4.6-percent decline in same-store sales at Burger King and a 0.1-percent dip in same-store sales for Wendy's North American system.
McDonald's global same-store sales increase was led by a 6.4-percent jump in Europe and a 4.7-percent increase in the company's Asia/Pacific, Middle East and Africa region.
Strong performance in the United Kingdom, Germany and France fueled same-store sales increases in the European region, McDonald's said, while positive results in Japan and Australia helped offset lingering weakness in China, contributing to the jump in the APMEA region.
In Monday trading, McDonald's share price rose 1.5 percent to close at $62.64.
The company operates or franchises about 32,000 restaurants worldwide.
Contact Mark Brandau at [email protected].
