McDonald’s Corp. reported global comparable sales for November were up 4.8 percent, which was weaker than anticipated in its key domestic market and Japan.
In the U.S., McDonald’s credited the McRib sandwich, demand for McCafe beverages and its core menu for boosting sales 4.9 percent. Although winter is a historically slow period for McDonald’s is likely to grab its share of media attention with a nationwide promotion of oatmeal in the wings.
“Contemporary locations, quality food and beverages at an outstanding value and operations excellence continue to be the key ingredients,” said McDonald’s CEO Jim Skinner.
Comparable sales for the Asia/Pacific, Middle East and Africa region grew 2.4 percent. European sales grew 4.9 percent.
For the growth in Europe, McDonald’s pointed to France, Germany, Russia and the U.K. The company cited weakness in Japan for its comparatively sluggish sales in the third region.
In a research note, Morgan Stanley analyst John Glass wrote that while McDonald’s had fallen short of the 5.6 percent consensus for sales growth, “we do believe the company’s November same store sales results remained at the top of the [quick-service restaurant] industry.”
Moving into 2011, he wrote, “McDonald’s is positioned to maintain (and likely grow) its industry leading share, particularly in the US, due to a robust product pipeline, new technology initiatives (updated point-of-sale) and a ramp-up in remodels.”
Glass added that the results are likely to put a damper on the stock’s movement, but that it “shouldn’t lose much ground.”
McDonald’s also advised that weakened foreign currencies are likely to affect fourth quarter earnings by 1 to 2 cents per share.
How sad that America’s most visible export is crap food.