McDonalds up 2 Percent On Postive Sales Data
- Updated: June 10, 2013
McDonald’s was up 2 percent in pre-market trading following positive sales data reported Monday morning.
The company reported that sales at established restaurants around the world rose 2.6 percent in May as it expanded offerings for breakfast items sold late at night. It also refined other menus and benefited from expanded advertising of value-priced meals.
The 2.6 percent metric came in stronger than analyst consensus that called for a 1.9 percent rise in sales at restaurants around the world that had been open more than 13 months.
Breaking it down by country, the United States saw the largest gain of 2.4 percent. Europe rose 2 percent and Asia/Pacific, Middle East, and Africa stores rose 0.9 percent. Analysts polled by Consensus Metric expected a 2.1 percent rise in the US, 1.2 percent in Europe, and 1.5 in other countries.
In recent months, other fast food chains have gained ground on McDonalds–some by copying its business model. Rivals, Burger King (NYSE: BKW) and Wendy’s (NASDAQ: WEN) have introduced new, value-priced menu items and extended their hours to compete with the chain.
But McDonald’s has introduced new products of its own. It’s new egg-white McMuffins along with its chicken McWraps have been hits with customers. The company is also rumored to be planning a widespread roll-out of breakfast items that are available beginning in the early hours of the morning. Some hope that the company eventually offers breakfast items all day.
In early trading McDonald’s was up 1.89 percent breaking the psychological $100 mark at $100.10.
Disclosure: At the time of this writing, Tim Parker had no position in any of the mentioned equities.
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