Update: McDonald's Sales Leaves Me With Egg McMuffin On My Face

| About: McDonald's Corporation (MCD)

Summary

McDonald's U.S. same-store sales down 2.8%.

The dip came as a bit of a surprise and makes me have to rethink my opinion on McDonald’s latest gimmick.

I thought we’d see an improvement.

Well, so much for McDonald's (NYSE:MCD) Gone In 60 Seconds program giving McDonald's much help. On September 9, McDonald's reported same-store sales in the U.S. with a 2.8% drop. This was slightly better than the 3.2% drop in July but obviously not by much. Maybe the problem is it isn't doing enough inwardly blaming. In the release, CEO Don Thompson blamed headwinds, challenges, the economy, the industry, and the competition.

I think I need not be so easily impressed sometimes. In one of my previous McDonald's articles linked above, I described the new program as something that could really help. I thought it was great marketing, a great way to win trust, and anecdotally I found it to be a cool and thrilling experience with the neat prospect of possibly winning a free lunch. I concluded with:

"I'm not saying this single move is some huge game-changer for the company, but if it can help pick up sales a percent or two and gain back overall trust and loyalty that spills into other day parts, then McDonald's may be on the right track."

So much for that, at least so far. No 1% or 2% improvement. No nothing. I guess it's going to take a lot more than a 60 second thrill one hour during lunch for drive-through to get guests excited and coming back more. Anecdotally again, it makes sense. Even though I wrote an article about the experience I had completely forgotten about it and hadn't been back to McDonald's for lunch since.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

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