In my mind, there is no better cure for the common cold or the slight hangover (sorry, Mom!) than McDonald's (NYSE: MCD). Egg and cheese biscuit for breakfast, old-fashioned McNuggets for lunch, and I'm a new woman. Apparently folks around the world have stuffy noses or pounding headaches, because the burger baron saw its same-store sales rise 5.1% in May. This improvement comes despite continued economic pressures and an increase in unemployment.
Business overseas was better for McDonald's than stateside sales. Europe saw a 7.6% rise in same-store sales, compared to just 2.8% in the United States. Highlights for American business included coffee beverage, which exceeded expectations, and the Southern Style Chicken Biscuit and Sandwich (the former of which is another of my favorites).
The shares are looking a little bit under the weather itself out of the gates today, dropping a quick 3% in early trading.
Perhaps folks are focused on the less-than-impressive U.S. sales number, or the stock could simply be following the broader market into the red. Investors could also be taking some profits off the table after MCD rallied more than 13% between May 19 and June 3.
Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.
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