McDonald’s Corporation (NYSE: MDO) announced Dec. 10 its global sales in restaurants opened at least 13 months rose 2.4 percent in November. The same figure in the U.S., however, increased by 2.5 percent, compared to just 1.4 percent in Europe.
“McDonald’s is a destination for more than 69 million customers every day because we offer great-tasting, high-quality food in increasingly modern and appealing restaurants,” said McDonald’s President and Chief Executive Officer Don Thompson. “We are strengthening our focus on the global priorities that are most impactful to our customers – optimizing our menu, modernizing the customer experience and broadening accessibility to our Brand to move our business forward amid today’s broad-based economic and competitive challenges. I am confident that these strategies and the actions we are taking will solidify our foundation and deliver long-term profitable growth in the future.”
The jump in sales was welcomed after October’s 1.8 percent decline—McDonald’s first drop in key monthly sales in almost a decade. Analysts had expected the fast-food juggernaut’s November sales to remain flat. Following the November sales announcement, investors bought McDonald’s shares, sending their price up 2.2 percent in premarket trading.
US sales in November strongly benefited from McDonald’s popular breakfast menu, along with premium menu options such as its limited-time Cheddar Bacon Onion sandwich.
The surge in McDonald’s shares helped the Dow extend its streak of advances to four days. According to the Wall Street Journal, the Dow Jones Industrial Average rose 34 points in midday trading Dec. 10, the Standard & Poor’s 500-stock index added 3 points and the Nasdaq Composite Index rose 17 points.
“Consumer spending has been pretty decent, so I’m always concerned: Is this going to continue into next year?” Paul Hogan, co-manager of the Equity Income Fund for Fenimore Asset Management, asked the Wall Street Journal. “But I think McDonald’s results were pretty good for the outlook for the US.”
McDonald’s hopes to end the year on a high note, especially with the seasonal launch of its popular McRib pork sandwich. The chain also replaced its president of US operations after its dismal October sales report. Jeff Stratton, who had been the company’s global restaurant officer, took over Dec. 1. But some analysts aren’t ready to count Ronald McDonald in just yet.
“One month does not a trend make,” ITG Investment Research analyst Steve West told Reuters. “But it’s a nice sign to see them rebound after a horrible October.”
