Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  McDonald's Corporation    MCD

Delayed Quote. Delayed  - 09/29 10:00:44 pm
114.79 USD   -0.34%
09/29 MCDONALD : LAKEVILLE Pedestrian struck by vehicle
09/29 DAILY DIVIDEND : Mcd, jout, eog, bku, gbci
09/29 MCDONALD : Concert to raise money for BackStoppers
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

McDonald's Corporation : McDonald's May Same-Store Sales Growth Slows

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/08/2012 | 02:35pm CEST

--Global same-store sales rose 3.3% in May, well below analysts' 5.2% projection

--McDonald's blames economic issues for missed expectations

--Shares down 2.8% at $85.95 premarket

McDonald's Corp.'s (MCD) global same-store sales rose a slower-than-expected 3.3% in May as economic woes such as austerity measures in Europe and slowing growth in China pressured the world's largest fast-food chain's results.

Shares were recently trading 2.8% lower at $85.95 in premarket trading as analysts were expecting a 5.2% increase in global sales from restaurants open at least 13 months, according to Consensus Metrix. After ending last year as one of the best performing stocks in the Dow Jones Industrial Average, McDonald's shares are down 12% since the beginning of the year, through Thursday's close.

McDonald's has been able to boost guest traffic and sales faster than most of its competitors with its increasingly diverse menu--ranging from value-price offerings to higher-margin products like blended-ice drinks--and its growing global operations. But the hamburger chain has previously warned the global economic climate remains challenging with varying degrees of consumer confidence, economic pressures and inflationary costs. The headwinds also contributed to the company missing April sales-growth estimates.

"Despite the increasingly challenging global economic environment," Chief Executive Jim Skinner said, "I am confident we will continue to deliver long-term sustainable growth."

Most restaurant chains are seeing their strongest growth in emerging markets like Asia, but for McDonald's, the U.S. has become its biggest growth engine, despite the fact that the restaurant industry is over-saturated and highly competitive.

Same-store sales in the U.S. rose 4.4%, missing the 5.3% growth estimate from Consensus Metrix. The company attributed its growth to the launch of its seasonal Blueberry Banana Nut Oatmeal and continuing demand for its breakfast items. But Burger King and Yum Brands Inc.'s (YUM) Taco Bell are making a comeback in the U.S., potentially posing a threat to McDonald's.

In Europe, same-store sales grew 2.9%, well below the 5.1% analyst estimate, as austerity measures offset the benefits of remodeling restaurants. McDonald's has said that it is seeing weakness in France, Germany and the U.K., as unemployment puts a damper on its sales.

The Asia/Pacific, Middle East and Africa region posted a 1.7% decrease, while analysts projected a 3.2% rise. McDonald's said positive results in Australia were more than offset by negative results in Japan as it is still recovering from last year's tsunami and, to a lesser extent, China, which is seeing its economic growth slow to 8% this year from last year's 9%.

McDonald's reported in April its first-quarter earnings rose 4.8% as sales grew slightly faster than expected, signaling the company's resilience against broader economic woes. But R.W. Baird analyst David Tarantino notes that McDonald's management's cautious tone in April regarding the second quarter, combined with negative currency movements since the start of May, suggest second-quarter earnings could fall below analysts' consensus.

McDonald's said May systemwide sales rose 1.2%, or 5.6% in constant currencies.

Write to Melodie Warner at melodie.warner@dowjones.com

Write to Annie Gasparro at annie.gasparro@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MCDONALD'S CORPORATION
09/29 MCDONALD : LAKEVILLE Pedestrian struck by vehicle
09/29 MCDONALDS CORP : Change in Directors or Principal Officers, Financial Statements..
09/29 DAILY DIVIDEND REPORT : Mcd, jout, eog, bku, gbci
09/29 MCDONALD : Concert to raise money for BackStoppers
09/29 MCDONALD : Durban man shot in the back at police station
09/29DJU.S. HOT STOCKS : Hot Stocks to Watch
09/29DJMCDONALD : Raises Quarterly Dividend 6%
09/29DJMCDONALD : Raises Quarterly Dividend 6%
09/29 MCDONALD : Police report - bayside
09/29 MCDONALD : Raises Quarterly Cash Dividend By 6%
More news
Sector news : Quick Service Restaurants
09/26DJYUM BRANDS : Board Approves Spinoff Plan, Raises Dividend 11%
09/26DJYUM BRANDS : Board Approves Spinoff Plan, Raises Dividend 11%
09/21DJCHIPOTLE MEXICAN GRILL : Explains Food-Safety Practices in Ad Campaign
09/15 MCDONALD'S GETS FINAL BIDS FOR NORTH : sources
09/15 McDonald's gets final bids for North Asia outlets - sources
More sector news : Quick Service Restaurants
News from SeekingAlpha
09/29 Maiden Holdings Tops Financial Dog For September Gains
09/29 National Coffee Day arrives as prices march higher
09/29 McDonald's on watch after hitting cash return target
09/29 McDonald's declares $0.94 dividend
09/28 Walmart's Next Move Against Amazon
Advertisement
Financials ($)
Sales 2016 24 424 M
EBIT 2016 7 979 M
Net income 2016 4 716 M
Debt 2016 25 670 M
Yield 2016 3,16%
P/E ratio 2016 21,19
P/E ratio 2017 18,69
EV / Sales 2016 5,08x
EV / Sales 2017 5,50x
Capitalization 98 290 M
More Financials
Chart MCDONALD'S CORPORATION
Duration : Period :
McDonald's Corporation Technical Analysis Chart | MCD | US5801351017 | 4-Traders
Full-screen chart
Technical analysis trends MCDONALD'S CORPOR...
Short TermMid-TermLong Term
TrendsNeutralBearishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 129 $
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Stephen J. Easterbrook President, Chief Executive Officer & Director
Enrique Hernandez Non-Executive Chairman
James R. Sappington Executive VP-Operations and Technology Systems
Kevin M. Ozan Chief Financial Officer & Executive Vice President
Andrew J. McKenna Chairman-Emeritus
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
MCDONALD'S CORPORATION-2.51%98 290
YUM! BRANDS, INC.23.50%35 176
CHIPOTLE MEXICAN GRILL..-12.82%12 179
DOMINO'S PIZZA, INC.37.33%7 373
DOMINO'S PIZZA ENTERPR..21.58%4 858
JACK IN THE BOX INC.25.39%3 143
More Results