McDonald's Sales Bounce Back in November
You can't McDonald's down for long. Sales at established restaurants rose more than expected in Nove…You can't McDonald's down for long. Sales at established restaurants rose more than expected in November as a renewed emphasis on low-priced food helped the company bounce back from a rare decline in October.
Still, analysts said it was too early to say that the world's biggest restaurant chain, known for its french fries and Big Macs, had regained its strong lead over rivals. "One month does not a trend make ... but it's a nice sign to see them rebound after a horrible October," said ITG Investment Research analyst Steve West.
McDonald's said global sales at restaurants open at least 13 months were up 2.4% in November, easily topping the tepid 0.17 percent increase expected by analysts polled by Consensus Metrix. In October, McDonald's had its first monthly drop in the closely watched performance measure in nine years.
Even now, Mickey D's profits could get squeezed as diners shop around for deals and restaurants respond by keeping prices low.
"We are concerned about the margin outlook in this more promotional environment," said Lazard Capital Markets analyst Matthew DiFrisco. The chain dumped its ceo, Jan Fields, after the poor October report; he was replaced Dec. 1 by Jeff Stratton, who had been its global restaurant officer.