McDonald's August Sales Rise 4.9%, Missing Estimates
McDonald’s August Sales Rise 4.9%, Missing Estimates
Jason Alden/Bloomberg
McDonald’s posted a 4.6 percent increase in the U.S. and a 7.8 percent gain in Asia, Africa and the Middle East.
McDonald’s posted a 4.6 percent increase in the U.S. and a 7.8 percent gain in Asia, Africa and the Middle East. Photographer: Jason Alden/Bloomberg
McDonald’s Corp., the world’s largest restaurant chain, said comparable-store sales climbed 4.9 percent last month from a year earlier, missing analyst estimates, as demand growth slowed in Europe.
Analysts projected global sales would advance 5 percent, the median of three estimates compiled by Bloomberg. Sales at restaurants open at least 13 months rose 2.2 percent in Europe, hurt by slow demand in France, the company said. Analysts estimated a 4 percent increase.
The Oak Brook, Illinois burger chain must introduce more hit products to beat increasingly higher sales comparisons, Steve West, a St. Louis-based analyst with Stifel Nicolaus & Co., said in a telephone interview. So far global same-store sales have increased for 88 months straight, said Lizzie Roscoe, a McDonald’s spokeswoman.
The company, led by Chief Executive Officer Jim Skinner, has added frozen drinks and other items to attract diners to its locations outside regular meal times.
“They need to continue to come out with new product news,” West said. “Everybody talks about the McCafes and smoothies and frappes now, but it’s what’s next.”
West expects the company to upgrade its milkshakes and add frozen lemonade and chicken sandwiches next year.
McDonald’s posted a 4.6 percent increase in the U.S. and a 7.8 percent gain in Asia, Africa and the Middle East. McDonald’s European performance was the weakest since February 2009.
McDonald’s fell $1.71, or 2.2 percent, to $74.37 at 4:15 p.m. in New York Stock Exchange composite trading. McDonald’s has gained 19 percent this year.
To contact the reporter on this story: Cotten Timberlake in Washington at ctimberlake@bloomberg.net; Burt Helm in New York at bhelm3@bloomberg.net
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