McDonald’s Corp. (NYSE: MCD) may have been the best Dow Jones Industrial Average component in 2011, but that was then. The “this is now” is not looking too great here on the company’s same-store sales metrics for July. The U.S. was down by 0.1%, something almost unheard. At the same time, Europe was down by 0.6% and the Asia/Pacific, Middle East and Africa fell 1.5%.
Having a new CEO is no easy task after such a great run. Chief Executive Officer Don Thompson said, “We are committed to driving the business over the long-term by executing our proven Plan to Win strategy, despite softer global comparable sales in July. Our leadership team has the experience to effectively manage through the challenging environment and build sales and market share.” Words of caution are not what investors want to hear. Not from McDonald’s.
The company said overall that July U.S. comparable sales were relatively flat as “the promotional activity did not offset the effects of the sluggish economy and last year’s launch of the Mango Pineapple smoothie. Customers’ ongoing appetite for McDonald’s breakfast and the McCafe Frappe line-up supported the month’s results. Going forward, the U.S. is focused on driving results by providing a well-balanced combination of value, variety and innovation across the menu.”
McDonald’s shares are down just over 3% on the news this morning to $86.39 after closing at $89.01 yesterday. Its 52-week range is $83.61 to $102.22.
JON C. OGG