Posted on 02/08/2013 6:51:04 AM PST by traumer
(Reuters) - McDonald's Corp (MCD) said on Friday that January sales at established restaurants around the world fell 1.9 percent, a steeper decline than expected as fast-food chains fight for diners. McDonald's warned last month that same-restaurant sales would be down. Analysts polled by Consensus Metrix had expected a decline of 1.1 percent.
Shares of McDonald's, which had fallen earlier in the week, slipped 3 cents to $94.60 in premarket trading.
McDonald's expected sales and profit growth to be under pressure in the near term, as diners spend cautiously due to lackluster economic growth in most major markets. At the same time, the leading fast food chain is comparing against strong results from a year ago, including a 6.7 percent gain in same-restaurant sales in January 2012.
February comparable sales will be hit by about 3 percentage points because the 2012 period included an extra day due to the leap year, McDonald's said. In February 2012, the sales rose 7.5 percent. Comparable sales in Europe, McDonald's top market, declined 2.1 percent last month, with weakness in Germany and France. Analysts expected an increase of almost 0.1 percent.
The United States, a close No. 2, posted a 0.9 percent gain, helped in part by the addition of the Grilled Onion Cheddar burger to its Dollar Menu. U.S. results exceeded analysts' target for a 0.3 percent decline.
(Excerpt) Read more at finance.yahoo.com ...
“Pink Slime”?!
Sales INCREASED IN THE US by 0.9% when they anticipated a minus .3 decline. So your theory doesn't appear to work in the US.
It’s been years since I’ve patronized any fast food establishment. I went to a Subway two years ago, I think, because it was a convenient place to wait for a friend.
I can make better hamburgers, fajitas or burritos at home, and no one will hawk a loogie into my food because of my skin color.
U.S. retail sales rose .3% in November, aided by car sales which is normal for end of year model sales. This offset a 0.3 % decline in October. Department store sales dropped 0.8 percent and general merchandise that includes Wal-Mart and Target fell 0.9 %.
For December, adjusted sales were 0.5% higher which statistically would fall within a margin of error for 0 %.
Spending for 2012 didn’t even equal 2011; unadjusted 2012 at 5.2% which is down from 7.9% overall unadjusted in 2011.
Excluding auto sales which traditionally impact end of year sales, sales rose 0.3% which was slightly above the predicted 0.2% positive forecast (not minus .3%).
It is forecast that spending is unlikely to move upward by much until hiring picks up. Right now, consumer spending which is 70+ % of the economy and the main driver. Overall, the trend is flat and new taxes will put a further strain on consumer spending power. We had the Christmas season spike (such as it was), but it is a new year with new government drains on the economic engine. Overall, I would say the theory still fits but who knows? Miracles do happen.
As a 14 year old, I worked nearly full-time at a McDonald’s. The food then was real. Real beef, real potatos, real milk products in the shakes, etc.
Today? I can’t tell you what the hell is in it, but nothing they sell, except the Coke syrup they use is 100% anything. You taste the meat and it isn’t beef - lots of fillers of something, same for the fries - processed something. Shakes? Hell I don’t know - maybe wood pulp for all I know.
Steve Martin was right:
I have a theory about McDonald’s, that is, everything they make is all one thing, and in the back they have this big vat full of this stuff, these little molds combining, like SPLURT ‘Hamburger!’ SPLURT ‘Malt!’ SPLURT ‘Paper box!’ SPLURT ‘Here’s your change!’
“I don’t know what ingredient causes it, but I get sick to my stomach every time I eat their burgers.”
Do you check to see if the patty has the marks where the jockey hit it?
We try to eat out just once a week, usually on Saturdays. Four of us went to Karl's Jr. and got four combos that came in around $27. Looked around and there were only two other people in the place at lunch time. Drove past the McDonalds and sure enough, every parking space was taken.
We will see how consumer sales go for the rest of the year. It is worth noting that the trade deficit has dramatically shrunk due to record oil exports.
Record Oil Exports Shrink Trade Deficit as U.S. Fills Energy Gap
"The gap shrank 20.7 percent to $38.5 billion, lower than any estimate in a Bloomberg survey of 73 economists and the least since January 2010, Commerce Department figures showed today in Washington. The jump in fuel sales to overseas buyers, combined with purchases of the fewest barrels of imported crude in almost 16 years, led to the smallest petroleum deficit since August 2009."
I would expect the cheap fast food places to go up in a down economy, at least until it gets so bad that people can’t even afford THAT.
Agree. Cheap and filling. Oversea, fast foods like McDonald are actually pretty expensive. I suspect that has something to do with the decline in sales in Europe.
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