You are here
CHICAGO -- Consumers worldwide who are watching their spending bought more burgers and chicken breakfast biscuits at McDonald's in October, leading to a big rise in sales at established locations for the fast-food leader, The Associated Press reported.
McDonald's Corp. said Monday its global same-store sales jumped 8.2 percent during the month, beating the company's own prediction for a rise similar to the one it recorded in its last quarter, when same-store sales jumped 7.1 percent worldwide.
Same-store sales for McDonald’s rose 5.3 percent in the United States, helped by new menu items, including the Southern Style Chicken sandwich, and continued demand for breakfast items. The company's popular Dollar Menu and its annual Monopoly promotion also drew in value-hungry consumers, according to the fast-feeder.
"McDonald's strong October sales show that we are delivering what customers count on from McDonald's -- choice, variety and high-quality food and beverages at affordable prices," chief executive Jim Skinner said in a statement.
Same-store sales, or sales at locations open at least a year, are a key indicator of performance since they measure growth at existing locations rather than newly opened ones. The hamburger chain said total sales rose 5.4 percent during the month.
The results were a bright spot in what was a dismal month for most restaurant operators. Many sit-down chains reported steep declines in same-store sales during October as consumers grew anxious about the possibility of a prolonged recession, the report said.
Morningstar analyst John Owens told the AP the results show McDonald's is likely benefiting from diners who might ordinarily go to pricier sit-down restaurants but are gravitating to fast food to save money—a phenomenon called "trading down."
"It definitely shows they are recession-resistant," he said.
But Owens cautioned the company is not immune to the effects of a recession since some customers may start ordering more from the Dollar Menu or restrict their purchases of soft drinks or other items that pad the company's profit.
McDonald's is scheduled to release November same-store sales on Dec. 8.