Bloomberg Anywhere Bloomberg Professional About Bloomberg


 
McDonald’s October Sales Rise 3.3% on Europe, Asia (Update2)

By Courtney Dentch

Nov. 9 (Bloomberg) -- McDonald’s Corp., the world’s largest restaurant company, said global sales rose 3.3 percent in October, topping some analysts’ estimates.

Sales at U.S. restaurants open at least 13 months fell 0.1 percent, while Europe rose 6.4 percent, Oak Brook, Illinois- based McDonald’s said today in a statement. Sales in Asia, the Middle East and Africa rose 4.7 percent.

Sales growth in Europe, led by the U.K., France and Germany, and in Asia, driven by Japan and Australia, helped lift worldwide orders and temper slowing domestic sales. In the U.S., McDonald’s competitors have used promotions to draw sales, such as Burger King Holdings Corp.’s $1 double-cheeseburger offer.

“We’re encouraged by continued strength in the international business, which more than offset the anticipated domestic softness,” David Tarantino, an analyst with Robert W. Baird & Co. in Milwaukee, wrote in a note today. He rates the stock “outperform.”

McDonald’s rose 92 cents, or 1.5 percent, to $62.64 at 4:01 p.m. in New York Stock Exchange composite trading. The shares have gained less than 1 percent this year.

Global sales were projected to rise 1 percent, the average of three estimates from analysts at Barclays Capital, Janney Capital Markets and Telsey Advisory Group. U.S. sales were expected to fall 0.5 percent. The analysts projected sales gains of 3 percent in Europe and 1 percent in Asia, the Middle East and Africa.

To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net

Last Updated: November 9, 2009 16:07 EST

Sponsored links