Retail

McDonald's (MCD): The Hamburger Economy

McDonald’s (MCD) has an increase in same-store sales for October of 6.9%. Overall system-wides sales were up 14.2%.

In the U.S., comparable sales climbed 5.4% as customers continue to visit McDonald’s for the compelling value, new products, conveniences such as late-night hours and a wide-range of breakfast options

In Europe, comparable sales rose 6.4% for the month, driven primarily by France, the U.K. and Russia.

In Asia/Pacific, Middle East and Africa, locally relevant products, extended operating hours and branded affordability menus fueled October’s comparable sales increase of 9.4%. Strong performance in most markets, led by Australia, Japan and China, contributed to these results.

And, Target (TGT) and CostCo (COST) same-store sales also rose for October. Consumers are getting cheap which may mean that they are getting smart.

Target and CostCo are know for having excellent branded products at the lowest prices a buyer is likely to find.

And, no matter how bad things get, consumers can always afford a hamburger.

Brother, can you spare a dime.

Douglas A. McIntyre

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