McDonald's profits rise despite recession
source: http://biz.yahoo.com/ap/081208/mcdonalds_november_sales.html?.v=3
-
-
- AwesomeJosh
- added this
Consumers hungry for a deal boosted worldwide sales at McDonald's Corp.'s established locations by 7.7 percent in November, the fast-food leader said Monday.
Even recession-wary consumers in the U.S. were enticed by the Golden Arches during the month. U.S. same-store sales -- or sales at locations open at least a year -- rose 4.5 percent.
The Oak Brook, Ill.-based chain said the rise came from strong sales of breakfast items, chicken sandwiches and the chain's value menu options. The increase comes even as U.S. consumers increasingly opt for eating at home to conserve cash.
The past few months have been difficult ones for the restaurant industry due to the deepening of the now yearlong recession. McDonald's has been one of the few bright spots in the sector, reporting a same-store sales increase in October of 8.2 percent while several of its pricier sit-down competitors reported double-digit drops. Many chains have yet to report their November same-store sales, but analysts are expecting a similarly dismal showing.
Same-store sales are a key indicator of restaurant performance since they measure sales at existing locations rather than newly opened ones.
Egg McMuffin's are recession proof...
Even recession-wary consumers in the U.S. were enticed by the Golden Arches during the month. U.S. same-store sales -- or sales at locations open at least a year -- rose 4.5 percent.
The Oak Brook, Ill.-based chain said the rise came from strong sales of breakfast items, chicken sandwiches and the chain's value menu options. The increase comes even as U.S. consumers increasingly opt for eating at home to conserve cash.
The past few months have been difficult ones for the restaurant industry due to the deepening of the now yearlong recession. McDonald's has been one of the few bright spots in the sector, reporting a same-store sales increase in October of 8.2 percent while several of its pricier sit-down competitors reported double-digit drops. Many chains have yet to report their November same-store sales, but analysts are expecting a similarly dismal showing.
Same-store sales are a key indicator of restaurant performance since they measure sales at existing locations rather than newly opened ones.
Egg McMuffin's are recession proof...
-
- groups:
- Community
-
- tags:
- News, Current TV, Recession, McDonald's, 1 more
-
-
InformedTexan
-
This makes perfect sense! The products at McDonalds are inferior goods (not necessarily because they're inferior in quality) because as people's incomes fall (or go away completely) they are more willing to buy cheaper products. If you get rich fast you don't keep buying bologna, you buy prime rib! And it works the other way - the less you have, the less willing you are to buy normal goods, or the more expensive products you'd be more willing to buy when one's income rises.
- 3 years ago
-
InformedTexan
