Market Disappointed With McDonald's (MCD) Sales

The market is disappoint with McDonald’s (NYSE: MCD) same-store sales in November. The company’s stock trades down about 2% to $79, still near its 52-week high. The shares have risen to their peak value since the large restaurant chain listed on the NYSE. It does not take much negative news to create doubt about the firm’s rapid growth.

The McDonald’s numbers appeared to be good but were blighted by weakness in Asia, which the company has said is critical to its future success.

In the U.S., comparable sales increased 4.9% for November fueled by McDonald’s iconic McRib sandwich, continued strong demand for McCafe beverages and everyday value throughout the menu.

In Europe, November comparable sales rose 4.9% due to strong performance in France, Germany, Russia and the U.K. Europe’s focus on premium products such as the McWraps in Germany, four-tiered menu pricing and ongoing restaurant modernization contributed to these results.

Comparable sales in Asia/Pacific, Middle East and Africa rose 2.4% for the month driven by Australia with positive results in China and most other markets, partly offset by Japan. APMEA’s results benefitted from initiatives that are differentiating the McDonald’s experience: compelling value, conveniences such as delivery and drive-thru, and restaurant reimaging.

Wall St. expects sales to continue to rise 6% or 7% a month, and that won’t happen

Douglas A. McIntyre