McDonald’s Corp. (NYSE: MCD) released its latest data on same-store sales growth. As the title of this post suggests, McDonald’s has run into a growth problem. We cannot figure out how it can maintain any future growth at this rate, compared to the past decade.
October global same-store sales increased by a mere 0.5%, versus a gain of only about 0.1% expected by the analysts who project this figure. Same-store sales growth of 0.2% in the United States was slightly under projections.
Europe was a slight positive at a gain of 0.8% on the region’s same-store sales. This figure was driven by gains in France, the United Kingdom and Russia, with a slight drag in Germany. We saw that October’s APMEA (Asia/Pacific, Middle East and Africa) comparable sales were down by 2.8%.
One issue to consider is an extra day shift, and then there were also promotions of the Mighty Wings, a new wrap and the Pumpkin Spice Latte.
What we have a hard time with is that McDonald’s shares are still trading around $97, in a 52-week range of $83.31 to $103.70. The consensus price target is just over $104 for the next year. The growth rates are just not there for the time being, and we are not sure how McDonald’s will entice and reward investors in the next two years like it did from 2010 to 2012.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
