Early this morning, McDonald's (NYSE: MCD) announced that its April comparable sales increased 6.9%. The company's sales were pushed higher as sales strength in the United States helped to offset the impact of the stronger dollar. When the dollar is strong, it lessens the value of overseas sales -- the stronger dollar led to a 1% decline at MCD restaurants worldwide.Breaking down the numbers, sales in the U.S. increased 6.1%, European sales increased 8.4% and sales in Asia/Middle East/Africa increased 6.5%. Excluding currency translations, MCD worldwide sales increased 8.9%. In the United States, MCD received its biggest boost from its new McCafe coffees (a personal favorite, although it is tough to top an ice cold diet coke) and its chicken Snack Wraps.
Ahead of the opening bell, MCD was roughly 3% higher, trading in the $55 region. Trading at this price could be significant for MCD, as the shares would have taken out resistance from their 10-, 20-, and 50-day moving averages. These trendlines have acted as resistance and a clear break of these moving averages could signal a short-term uptrend is in the cards.
On an intermediate-term basis, the $56 region is a bit more important. Looking at MCD's chart, this level has provided support in the past, so it could act as resistance. Let's see if MCD can parlay this morning's good news into a rally worthy of taking out overhead resistance.
Closing Bell: Dubai sends jitters throughout the market (S, BBY)
Heinz looking good after the second quarter?
Why isn't Bank of America updating its shareholders on CEO situation?
Reader Comments (Page 1 of 1)
5-09-2009 @ 12:08PM
Doug T said...
Sales numbers suggest cheap consumer goods at Big Mac and Walmart outlets certainly come in handy during tough economic times. Any fiscal relief is a good thing.
http://www.mutualfundwealth.com/
5-08-2009 @ 10:05PM
draw984 said...
Ooops...MCD sales data is a good economic indicator. If burger sales rise, we're still in a recession.