McDonald’s Corp. (NYSE: MCD) posted awful same-store sales data for October this morning. Same-store sales were down in the United States by 2.2%, in Europe by 2.2%, and 2.4% in the company’s Asia/Pacific, Middle East and Africa (APMEA) region. The combined drop came in at 1.8%.
The company’s CEO said:
Though October’s sales results reflect the pervasive challenges of today’s global marketplace, I am confident that our strategies and the adjustments we are making in response to the current business headwinds will build sales momentum and drive sustained, profitable growth.
The short version is that eating at McDonald’s is too expensive now, no matter where a person lives. The company plans to increase its value-priced meal offerings in every region. In the U.S., Mickey D’s “remains focused on enhancing its value leadership position.” In Europe, the company is “reinvigorating its value offerings,” and in APMEA, McDonald’s “seeks to further differentiate the McDonald’s experience through unique daypart value platforms.”
These plans, if successful, will hit the company’s top line for the current quarter. It’s a case where the cure might be worse than the disease.
McDonald’s shares are down fractionally in premarket trading this morning at $86.24, less than half a buck from the 52-week low. The current 52-week range of the stock is $85.92 to $102.22.