McDonald's beats expectations with strong November performance
11 Dec 2012
Wall Street was taken by surprise Monday morning with McDonald's November same-store sales report beating expectations that showed particular strength in the US business.
The news comes after a weak October performance that left some investors speculating about the future of the world's largest restaurant company.
According to the Oak Brook-based burger giant, US same-store sales rose 2.5 per cent on the strength of its breakfast business, value offerings, beverages and limited-time offers like the cheddar bacon onion sandwich. In Europe, same-store sales grew 1.4 per cent, and 0.6 per cent in the chain's Asia/Pacific, Middle East and Africa division.
Overall, same-store sales were up 2.4 per cent, beating various expectations for a roughly flat performance.
McDonald's has taken a tough stance on skidding US sales as rivals like Wendy's and Burger King dished out new premium and value products. Days following the release of a report showing October's rare drop in monthly same-store sales, McDonald's said its US president, Jan Fields, had resigned and Jeff Stratton who had been the company's global restaurant officer would take over.
"We are strengthening our focus on the global priorities that are most "impactful" to our customers - optimising our menu, modernising the customer experience and broadening accessibility to our brand to move our business forward," McDonald's CEO Don Thompson said in a statement.