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Jim Cramer gives his take on McDonald's (MCD -1.2%) slumping comparable-store sales, saying he's...

Jim Cramer gives his take on McDonald's (MCD -1.2%) slumping comparable-store sales, saying he's confused why the company's promotional pricing isn't promoted. As for the slumping global economy, Cramer wonders why Starbucks knocked out a fantastic quarter with $4 coffee drinks while McDonald's headed south with $1 coffee. (video)
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Comments (9)
  • jmodrkrk
    , contributor
    Comments (94) | Send Message
     
    lol Cramer - because it's clearly not about the price. People who buy SBUX will buy it regardless of cheaper alternatives - it speaks to status and image regardless of the economic conditions. While this may be a stretched example vis a vis SBUX and MCD coffee but - If gasoline were 7 dollars a gallon, people would still buy Mercedes and Jaguars because the people who can afford to own $80k vehicles aren't too concerned with the price of gas, more the appearance and satisfaction it provides them.
    8 Nov 2012, 11:19 AM Reply Like
  • GeorgeTS
    , contributor
    Comments (100) | Send Message
     
    I get gas from McDonald's. haven't figured out how to power my Honda with yet though.
    8 Nov 2012, 11:25 AM Reply Like
  • redhat63
    , contributor
    Comments (88) | Send Message
     
    @jmodrkrk very good analysis and analogy. tx!
    8 Nov 2012, 11:36 AM Reply Like
  • Highyieldsoldier
    , contributor
    Comments (181) | Send Message
     
    Longterm I would rather own MCD over SBUX...but then again I dont drink coffee, and paying 4 dollars for a cup of anything makes me wonder what the heck's in it:}.
    8 Nov 2012, 11:50 AM Reply Like
  • 153972
    , contributor
    Comments (836) | Send Message
     
    Last time I checked McDonald's was promoting its pricing. Competition is a stiffer in US and China McDonald's is not expanding as fast as analysts want.

     

    I'm hoping it gets to 80 so I can buy more.
    8 Nov 2012, 12:48 PM Reply Like
  • nschmoyer
    , contributor
    Comment (1) | Send Message
     
    I have noticed this over the bad years and agree..Even poorer people in other countries buy status brands ,, and keep the cups and bottles and refill them with water !!! ( Mexico,India)
    8 Nov 2012, 02:01 PM Reply Like
  • John Armand
    , contributor
    Comments (2) | Send Message
     
    Price is the least sustaining method of product differentiation. Unfortunately Walmart has brainwashed much of the public into thinking price is the only type of product differentiation. The quality of the product must mean something. Starbucks is the product - not just the coffee. In the case of McDonalds - McDonalds is the product not just the coffee. Enough said ...
    8 Nov 2012, 02:50 PM Reply Like
  • tampabay
    , contributor
    Comments (321) | Send Message
     
    Lets see.. Starbucks makes good money selling coffee $4.00 a cup, McDonalds Doesn't do as good selling coffee at $1.00....
    I can't figure it out????
    8 Nov 2012, 09:51 PM Reply Like
  • zeligrenee
    , contributor
    Comment (1) | Send Message
     
    Starbucks making money is good market sentiment, which is indirectly favorable to lot of companies. MCD needs to rework on the marketing strategy. Presently it needs to lie low for a qtr or so, cut down Mtkg budgets since the phase is not supporting, and set it aside the monies for bigger launch. Ya Ppl will still buy Mercs & Jags, and what stopping MCD from moving away from $1 coffee to a coffee which would give a much wider return and a better status appeal.
    13 Nov 2012, 06:16 AM Reply Like
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