McDonalds Strong; Circuit City Out

By: TraderMark Monday, November 10, 2008 6:45 PM

Article Author

Bio and Articles
Author's Website

Vote for next session

The next market session will close:

Both our "Pooring of America" stalwarts are giving out updates this week - Walmart (WMT) with an earnings report Thursday and McDonalds (MCD) reported October same store sales today. They were stellar, despite a stronger dollar hurting on the currency conversion side. U.S. Sales are accelerating... again much like how Target shoppers are becoming Walmart shoppers (not by choice) (Dec 26 2007: Target Shoppers Turning into Walmart Shoppers) so are many mid chain restaurant eaters being forced downstream. What is also interesting to me is the strength in Europe - in this global recession McDonald's is also an alternative to pricier fare overseas. I expect both chains to continue to excel through 2009.

Consumers worldwide who are watching their spending bought more burgers and chicken breakfast biscuits at McDonald's in October, leading to a big rise in sales at established locations for the fast-food leader. Many sit-down chains have reported steep declines in same-store sales during October as consumers grew more anxious about the possibility of a prolonged recession.
McDonald's Corp (NYSE:MCD - News) on Monday said global sales at its fast-food restaurants open at least 13 months rose 8.2 percent in October, topping analysts' targets and sending its shares up more than 2 percent.

Bookmark:
Email
Print

The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.

Related Stories