Illinois, March 9: Riding high on the customer’s quest for cheap food McDonald’s Corp. (NYSE: MCD) global sales rose 1.4 percent in February. The fast-food behemoth revealed that same-store-sales at U.S. restaurants increased by 2.8 percent. However, European sales fell by 0.2 percent.
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February of 2009 had a day less than the February of 2008 which was a leap year. Adjusted global sales for the calendar difference were 5.4 percent higher than the previous year whereas U.S. sales after a days adjustment were up 6.8 percent.
The world’s largest restaurant company has been able to buck the trend of slowing sales by providing value meals. The Oak Brook, Illinois-based company has been kind of shock proof in the present economic turmoil. Its chicken wraps, Egg McMuffins and snack-sized sandwiches are spurring sales
Paul Westra, an analyst with Cowen & Co. in New York said, “The recession-resistant nature of brand McDonald’s continues to perform comparatively well despite the increasingly difficult global macro-economic environment.”
On a regional basis, McDonalds witnessed a 0.2% decline in Europe. Its Asian-Pacific, Middle East and African recorded a 0.7% growth, driven primarily by Australia and Japan. Sales in China were a disappointment for the company.
Oppenheimer restaurant analyst Matthew DiFrisco said of the geographical differences. "The U.S. fast-food business doesn't have an alternative to trade down, whereas international does. Trading down is harder in the U.S. Trading away in the international market is a bit easier."
Time and again, McDonalds has emerged as a company in the "consumer staples" industry. Akin to supermarkets, that sell everyday needs, Mc Donalds sales have also remained relatively stable, even during an economic downturn.
Solid performance in the U.S. exhibits Mc Donald’s strength in the domestic fast-food market where customers have tightened the shoestrings on their budget but still to eat out and head to quick-service restaurants.
McDonald’s stock that has shed close to 16 percent of its value this year rose 20 cents to $52.32 in New York Stock Exchange composite trading.
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