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UBS lowers estimates on McDonald's (MCD) ahead of the restaurant chain's Q3 report on its view...

UBS lowers estimates on McDonald's (MCD) ahead of the restaurant chain's Q3 report on its view that September's global same-store sales slowed. Analysts with the firm take Q3 EPS to $1.50 from $1.53 and full-year EPS gets shaved to $5.46 from $5.50.
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  • Richard Adams
    , contributor
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    Mr. Palmer at UBS continues to count on food inflation to increase same store sales at McDonald's. There's a limit to how much franchisees can raise prices and still continue to offer the "Dollar Menu". Today I can buy a very tasty McDouble or McChicken for $1.00 or a Big Mac for over $4.00. Why would I do that? Or why would I spend over $7.00 for a Quarter Pound w/ Cheese meal when I can but an entire bag of food from the Dollar Menu? At McDonald's we are proving that raising prices can actually reduce the average check. Franchisees cannot adjust for for food inflation and also to offer the Dollar Menu. It's one or the other.
    17 Oct 2012, 09:25 AM Reply Like
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