By Ben Fox Rubin
McDonald's Corp.'s (MCD) global same-store sales grew 0.5% in October, with results in the U.S. and Europe offsetting weakness in Asia.
McDonald's, the world's largest fast-food company, last month predicted global same-store sales for October to be relatively flat, despite what should have been an easy comparison from a year ago, when the company reported its first monthly same-store sales decline in nine years.
The company continues to struggle with a soft global economy that has caused consumers to pull back on restaurant spending. McDonald's and several of its rivals have tried to improve their results by focusing on cheaper food options.
The chain has looked to roll out a Dollar Menu & More lineup in the U.S. that includes its standard dollar items as well as products priced at $2 and $5. Some of its higher-priced products haven't sold well, including the $4 Angus burgers the chain pulled from its menu recently.
McDonald's said October systemwide sales rose 1.5%, or 3% excluding currency fluctuations.
In Europe, same-store sales, or sales at restaurants open at least 13 months, were up 0.8%, reflecting positive performance in the U.K., France and Russia, though the burger chain posted negative results in Germany.
In the U.S., same-store sales edged up 0.2%, with results supported by newer offerings, such as Mighty Wings and Pumpkin Spice Latte, and introduction of the new Premium Southwest McWrap, the company said.
The Asia/Pacific, Middle East and Africa region posted 2.8% lower same-store sales, primarily due to weaker results in Japan.
McDonald's last month narrowly beat third-quarter earnings estimates, but reported disappointing same-store sales growth worldwide.
Shares closed Thursday at $97.20 and were inactive premarket. The stock is up 10% so far this year.
Write to Ben Fox Rubin at [email protected]
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