McDonald’s Same-Store Sales Disappoint

by Christopher Freeburn | September 11, 2012 10:12 am

McDonald’s (NYSE:MCD[1]) posted higher same-store sales during August, but still fell short of Wall Street estimates[2].

Total same-store sales at restaurants open at least 13 months rose 3.7% last month. That missed analysts’ forecast of a 3.9% gain, Reuters noted.

The iconic burger chain said that same-store sales in Europe¬†increased¬†3.1% over last year. But that was below the 3.3% gain analysts had predicted. Europe has surpassed the U.S. as McDonald’s leading market for sales, despite the lingering economic crisis in the eurozone.

In the U.S., the chain reported same-store sales up 3% for August. That also missed analysts’ forecasts of a 3.1% rise.

The company did top analysts’ estimates in the Asia/Pacific, Middle East and Africa region, where same-store sales jumped 5.7%. That handily beat the 4% rise analysts had anticipated.

With rapid growth in Asia for American food chains, burger rivals have begun opening stores in the region. Burger King (NYSE:BKW[3]) recently announced plans to open 1,000 restaurants in China by 2019[4].

Though McDonald’s results clearly disappointed analysts, they were an improvement from July’s same-store sales, which were flat compared to last year.

Shares of McDonald’s rose fractionally in Tuesday morning trading.

Endnotes:
  1. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  2. but still fell short of Wall Street estimates: http://www.reuters.com/article/2012/09/11/us-mcdonalds-sales-august-idUSBRE88A0LU20120911
  3. BKW: http://studio-5.financialcontent.com/investplace/quote?Symbol=BKW
  4. announced plans to open 1,000 restaurants in China by 2019: http://investorplace.com/2012/06/burger-king-plans-to-add-1000-restaurants-in-china/

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