McDonald’s Corporation’s (
MCD) comparable sales for the month of October 2009 showed a sluggish growth of 3.3% as against the rise of 8.2% in the same month last year, exposing its sensitivity to rising unemployment, economic downturn, and the discount war amongst fast-food chains to lure consumers.
The company faces stiff competition from
Burger King Holdings Inc. (
BKC),
Wendy’s/Arby’s Group, Inc. (
WEN) and
Yum! Brands Inc. (
YUM). However, these quick-service operators are faring better than casual dining restaurant chains, such as
Cosi Inc. (
COSI) and
Red Robin Gourmet Burgers Inc. (
RRGB), as cash-strapped consumers are trading towards fast-food centers due to relative cheap dining options.
System-wide sales at McDonald’s worldwide restaurants climbed 10.3% for the month of October. However, in constant currencies, the rate of increase in system-wide sales dipped to 5.2%.
In the United States , comparable sales remained flat falling 0.1% in October (versus 5.3% increase last year for the comparable month). New menu products, including Angus Third Pounders and McCafe premium coffee line-up continued to support the month's results.
The fast-food giant had earlier indicated that U.S. sales for the month of October would be weak. Still the month’s result fared better than the overall quick-service restaurant industry.
In Europe, comparable sales increased 6.4% in October (versus 9.8% increase last year for the comparable month) fueled by strong performance in the U.K. , Germany and France . A variety of mid-tier items and premium menu options contributed to sales.
Comparable sales in Asia/Pacific, Middle East and Africa (APMEA) rose 4.7% in October (versus 11.5% increase last year for the comparable month) driven by Australia and Japan, partly offset by China.
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