McDonalds Sales Recover After October Slump

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McDonald’s sales at established restaurants rose more than expected in November.

A renewed emphasis on low-priced food helped the company bounce back from a rare decline in October.

McDonald’s said global sales at restaurants open at least 13 months were up 2.4% in November, easily topping the tepid 0.17% increase expected by analysts polled by Consensus Metrix.

In October, McDonald’s had its first monthly drop in the closely watched performance measure in nine years.

McDonald’s business has softened in the United States, the company’s second-largest market, as revived rivals such as Wendy’s and Burger King Worldwide crank out tempting new premium and value products.

One week after McDonald’s announced disappointing October sales, it replaced the president of its US business, Jan Fields. Jeff Stratton, who had been the company’s global restaurant officer, took over at the start of December.

US sales at established restaurants rose 2.5% in November, while analysts had expected a small decline.

McDonald’s attributed the results to breakfast, the Dollar Menu and its beverage menus. But it also said limited-time offerings like the cheddar, bacon and onion sandwich had bolstered sales.

Same-restaurant sales rose 1.4% in Europe, McDonald’s biggest market, compared with calls for a 0.1% increase. Results were stronger in the UK and Russia, while Germany continued to be a drag.

Asia/Pacific, Middle East and Africa turned in a 0.6% increase, compared with the average forecast of a 0.9% decline.

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