McDonald's Feels The Pain
Sales at McDonald's restaurants open for at least one year in the US, fell .6% in the last year. Overseas sales figures were slightly better, buoyed by the weak dollar's effects abroad.
This is only the forth drop in sales for MCD in the last 6.5 years. Largely a result of the high US unemployment which at around 10%, has slackened the number of people visiting McDonald's for a breakfast sandwich, cup of coffee or lunch while at work.
Other mitigating factors include increased competition and price warfare by competitors, Wendy's, Taco Bell (YUM) and Burger King (BKC) who have all instituted deeply discounted "dollar menu" items.
Overall though, global sales for MCD grew at a rate of 2.3% as growth in foreign markets offset the shrinking US market for Mickey Dees.
The company, based in Oak Brook, Ill., runs more than 32,000 restaurants in more than 100 countries.
Its shares fell $1.32, or 2.1 percent, to close at $60.61 Tuesday.
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Posted-In: Economics Intraday Update