The Hamburger Economy: McDonald’s Sales Up, Again (MCD)(WMT)
December 8, 2006 by Douglas A. McIntyreMcDonald’s cannot be stopped with an elephant gun. The huge food chain announced November same store sales rose 6.2%. Premium coffee and promotional games seemed to be big contributors. US sales were up 5.1%. In Europe the figure was 8.4%.
McDonald’s shares now trade near $44, a multiyear high.
Whether chicken sandwichs and coffee sales are an adequate explanation is really not clear. When the largest company in a field grows faster then competition, a large number of things must be going right. McDonald’s is still the premier brand, and, unlike Wal-Mart, it does not appear to have too many stores. Its basic offerings are not much different that Burger King.
Whatever it is, it works. Some bright analyst at a brokerage might make a name for himself by crafting a better explanation for the success.
Douglas A. McIntyre can be reached at [email protected]. He does not own shares in companies that he writes about.
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