McDonald’s Chief Executive Officer Don Thompson described the company’s sales as modest in July. The fast food chain reported that its global same-store sales increased 0.7 percent last month. The sales gain was higher than what analysts have estimated, which was for a 0.4 percent increase.

The reading, which measures sales at stores open at least 13 months, showed a 1.6 percent increase in the United States. Analysts called for a 0.3 percent gain. This was a good sign for the company that has to deal with wage protests from its workers and fierce competition on the market.

McDonald’s said that its domestic growth came from its morning menu, value offerings and core classics. The burger chain introduced new items to its menu in 2013, such as egg white breakfast sandwiches and chicken McWrap. The new items cater to the health conscious consumers.

Its competitors Wendy’s Co. and Burger King Worldwide Inc. have rolled out new items as well. McDonald’s is also promoting its Dollar Menu in the US and combo meals in Germany and Frances, which are the two biggest European markets. The promos attracted consumer who were cash-strapped.

The burger chain giant got a slight decline in the US same store sales in June. McDonald’s warned that its status for the rest of the year will still be challenged. In Asia, Europe, Africa and the Middle East, the company said that its same store sales dropped 1.9 percent in July.

McDonald’s shares dropped in morning trading but managed to rally by midsession at $98.42 per share. The shares increased 11 percent so far this year. The Standard & Poor’s 500 Restaurants Index went up 18 percent.

According to reports, the US economy grew more than the estimate in the second quarter. This was an indicator that the nation has overcome higher taxes as well as cuts in government spending. This must be the reason why McDonald’s has been selling more burgers. US spending in the US increased 1.8 percent in the second quarter.

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