Retail

McDonald’s on Track for New Low

Source: courtesy of McDonald's
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.

Paul Ausick

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.