There is a lot of talk swirling around Wall Street about the current economic slowdown, and just how hard it is going to hit businesses in the months ahead. But so for fast food giant McDonald's (NYSE: MCD), 2008 is looking pretty rosy. After ending 2007 with a disappointing decline in same store sales, McDonald's has now shown two straight months of sales growth following today's announcement that it had a pretty impressive 11.7% jump in same-store sales during the month of February.
Its American sales saw an increase of 8.3%, while-same stores sales in Europe really took off, showing a jump of an amazing 15.4%. Last month, the company reported that January same-store sales rose by 5.7%.
So what items are burning up the menus? For American consumers the sales increase was a result of high demand in breakfast meals, coffee and value meals. European sales got a boost from high demand for McDonald's hamburger and chicken meals.
I, for one, would not be betting against McDonald's and other fast-food chains out there. As more and more consumers begin to fear the current rough economy, I believe we will continue to see more people opting to dine in fast food restaurants as opposed to higher priced ones.
If we take a second to look at systemwide sales, McDonald's growth was even more impressive, with a 20% increase.
The stock is trading up 3.5% on the day to $54.12, up $1.85.
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 1 of 1)
3-11-2008 @ 9:20AM
Brian Patterson said...
My son got e coli 0157 H:7 from eating a Mcds meal in Milford Ct. Both McD's and Zurich Ins denied any liability yet the CDC National PulseNet database confirmed PFGE matches in their database. The US Department of Health confirmed the CDC's findings. My advise to anyone is to save their reciepts and an uneaten portion of their meal for further testing and confirmation of purchase.
3-12-2008 @ 9:14AM
tom said...
I find it hard to believe that your son was the only one to get ecoli. Hamburgars come in boxes of 300 and 50 plus boxes a week to the stores.
So many other cases should have been reported. The media would be all over the story just like Taco bell or Jack in the box a few years ago. Get over it. Crusade for a good cause and burn your anger for good.
3-12-2008 @ 1:09PM
Brian Patterson said...
You quite fluent in the packaging....the key word is PFGE matches. Each strain is a specific DNA-"thumbprint"....Like I said, the CDC National PulseNet database found matches and US Department of Health confirmed the CDC. Since the matches were isolated and random, the CDC did not send out an alarm. Matches as in plural.
3-12-2008 @ 2:03PM
tom said...
I just read the rest of your blogs. Answered some of my questions. I think you needed a better lawyer or a better case. 7 hits across the volume sold is not much to go on. It does not effect single serving out of hundreds and i find it improbable that with the kind of volume Mcds does that the reported cases would not number 700 or 7000. 6 years later i hope that your son is doing well. If this blogging is thearputic for you I for one will leave you alone. I think your time would be better spent playing with your son.