McDonald's Sales Slow Faster Than Expected In April |
| Fox Business - May 8, 2012 |
McDonald's Corp. (MCD) said sales growth at its established restaurants slowed in April at a faster pace than the company had anticipated, an indication that the economic headwinds may be catching up with the fast-food giant.
McDonald's global same-store sales, or sales at restaurants open at least 13 months, rose 3.3% in April, below the company's projection less than three weeks ago for 4% growth. The Oak Brook, Ill., company didn't explain the shortfall, although the drag appeared to be in the U.S., where McDonald's is trying to shift customers away from its dollar menu and to a new "extra value" menu, which has slightly higher prices and thus generates stronger profit margins.
The company has warned repeatedly that its results would be hurt by persistent economic uncertainty, austerity measures in Europe, slower economic growth in China, and commodity and labor cost pressures, particularly in the U.S. Nonetheless, McDonald's has frequently outperformed expectations, including a surprisingly robust first quarter.
Read more: http://www.foxbusiness.com/news/2012/05/08/mcdonald-sales-slow-faster-than-expected-in-april/#ixzz1uIbPqIcq
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- Posted: 2012-05-08 11:52:48
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