The Golden Arches Shine a Little Brighter
Thursday saw McDonald's (NYSE: MCD) report a 7.4 percent rise in global November sales.
According to Reuters, the sales were “led by big gains in Japan, China and a strong showing in Europe, its top revenue market.”
The article states that, “The world's biggest hamburger chain said sales at restaurants open at least 13 months rose 7.4 percent globally. Analysts were looking for an increase of 4.6 percent, according to Thomson Reuters data. Same-restaurant sales in Europe rose 6.5 percent.”
Sales in the U.S. Were saw an increase thanks to the restaurant chain's breakfast items and the seasonal peppermint mocha.
According to the Washington Post, “The figures are a snapshot of money spent on food at both company-owned and franchised restaurants. They do not reflect corporate revenue. The comparison is a key measure of a restaurant chain's performance, because it excludes the impact of recently opened or closed stores.”
Oven in Europe, sales were driven by the UK, France, Russian and Germany. Sales in the Asia Pacific Middle East and Africa region were led by Japan and China.
Traders who believe that MCD will keep rising might want to consider the following trades:
- You are definitely backing a winning horse. Not many companies have the longevity, the proven staying power, of MCD.
Traders who believe that MCD will suffer a fall may consider alternate positions:
- As cheap as the food is, people have limited disposable income right now, and that will take a toll on everyone. This rise could well be temporary.
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