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McDonald's (MCD) sales: Global comparable sales decreased 1.5% in February, narrowly beating the...

McDonald's (MCD) sales: Global comparable sales decreased 1.5% in February, narrowly beating the consensus estimate of analysts calling for a 1.6% drop. Sales in the U.S. fell 3.3% Y/Y while sales in Asia shed 1.6%. The calendar played a role during the month with last year's extra day due to leap year boosting the comp. Europe looked fairly promising with the U.K. and Russia strong, sales on the continent actually gained 2.7% if the extra leap year day is backed out. MCD +1.0% premarket.
Comments (15)
  • Jason Tillberg
    , contributor
    Comments (1237) | Send Message
     
    Cut prices MCD .. that's your only hope.

     

    Thus go the margins.

     

    http://seekingalpha.co...
    8 Mar 2013, 08:12 AM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    With all due respect Jason,

     

    cutting prices is not the answer.
    8 Mar 2013, 08:39 AM Reply Like
  • chopchop0
    , contributor
    Comments (3138) | Send Message
     
    Correct. Menu innovation is
    8 Mar 2013, 08:47 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5369) | Send Message
     
    I am shocked though that a frappe costs $3-4 and a meal for 4 costs about $20.
    8 Mar 2013, 12:08 PM Reply Like
  • FocalPoint Analytics
    , contributor
    Comments (5806) | Send Message
     
    The short title you click on says:
    McDonald's Feb. sales show promise...

     

    Promise because global comparable sales decreased by one tenth of one percent LESS than analyst’s estimates???

     

    I don't see US sales being down 3.3% as indicating promise, particularly when they had an extra day of sales due to leap year.

     

    As for what's wrong, I agree with Jason and MIchael, many of their offerings are overpriced... If they can't get their prices down expect store traffic to continue to slide. Trading traffic for higher margins is not a good strategy.
    8 Mar 2013, 02:47 PM Reply Like
  • IgnisFatuus
    , contributor
    Comments (2115) | Send Message
     
    <I don't see US sales being down 3.3% as indicating promise, particularly when they had an extra day of sales due to leap year.>
    Leap year was 2012 so last years data had one more day of sales than the 2013 figure. That said, the extra day equates to about 3.4% of monthly sales.
    8 Mar 2013, 08:24 PM Reply Like
  • mickmars
    , contributor
    Comments (1323) | Send Message
     
    Just need more poor people who can't afford to eat anywhere else.
    8 Mar 2013, 08:48 AM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    When I go to Costco, besides the giveouts, I usually enjoy a $5 three lbs chicken, short ribs, etc .. then go front and buy a almond chocolate vanilla ice cream bar at a fair cost.

     

    Even in Sacramento, the cafe is on the outside so you don't need to be a member to eat.

     

    At Walmart there is .... McDonalds.

     

    All due respect for capitalism but this is gonna kill, rise health care costs!

     

    Even healthier are the elderly east on Wednesday's Market St (San Francisco) Civic Center farmer's market, the recipients selling the healthy govt food (Starbucks Via!!).

     

    Took a Coursera course implying the corruption in the USA food system called "An Introduction to the U.S. Food System: Perspectives from Public Health"
    Keeve Nachman and Robert S. Lawrence
    Explore how food intersects with public health and the environment as it moves from field to plate.

     

    Thanks Coursera and John Hopkins
    8 Mar 2013, 09:06 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5369) | Send Message
     
    I think British are healthier than Americans. British sales rose. American sales went down. Thus, (MCD) doesn't seem a major contributor to American bad health. It is about portion and culture, not what you eat. I have a vegetarian friend who is obese. She eats way too much "healthier" fruits and vegetables.
    8 Mar 2013, 12:13 PM Reply Like
  • Joseph Harry
    , contributor
    Comments (178) | Send Message
     
    yes, but that would be putting personal responsibility on the individual... its better to ban soda
    8 Mar 2013, 01:30 PM Reply Like
  • FocalPoint Analytics
    , contributor
    Comments (5806) | Send Message
     
    To hell with laws banning what kinds of foods people want to consume. I don't want people telling me what I should or should not eat. We don't need food police.
    8 Mar 2013, 02:53 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5369) | Send Message
     
    Agree. Banning certain foods won't do any good. It is all will power and moderation. Weight Watchers stresses moderation. My girlfriend went to the extreme and switched to eating less and running for two hours every day. She lost 40 pounds in 6 months. She never could lose anything before.
    8 Mar 2013, 03:08 PM Reply Like
  • Joseph Harry
    , contributor
    Comments (178) | Send Message
     
    i was being sarcastic, btw
    8 Mar 2013, 04:12 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3864) | Send Message
     
    KO, PEP how is the mgmt going to avoid this trend.
    9 Mar 2013, 05:23 AM Reply Like
  • racchole
    , contributor
    Comments (309) | Send Message
     
    An extra day for leap year was responsible in the additional 0.1% to cover the analysts? Must have been a busy day.

     

    Long MCD. Great CEO and great execution at returning value to shareholders.
    8 Mar 2013, 02:53 PM Reply Like
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