McDonald's Store Sales Trail Estimates as Rivals Lure Diners
Bloomberg News
, the world's largest restaurant chain, said sales at stores open at least 13 months rose 0.5 percent last month, trailing analysts' estimates as rivals lured diners amid a choppy U.S. economic recovery.
Analysts projected a 0.6 percent increase, the average of 14 estimates from Consensus Metrix. U.S. same-store sales fell 0.8 percent in November, Oak Brook, Illinois-based McDonald's said in a statement today. Analysts estimated a 0.3 percent increase.
McDonald's, which last year got 32 percent of from its U.S. locations, has been revamping its menu and trying to improve service to attract Americans amid fierce restaurant competition. has recently introduced new items similar to McDonald's fare, including barbecue rib sandwiches and Big King burgers. Taco Bell is selling breakfast foods, as well as value packs of tacos.
'Competition remains intense, and we are making adjustments,' Chief Executive Officer Don Thompson said during an investor meeting on Nov. 14. 'Retailers are battling for greater portion of a smaller pie.'
McDonald's fell 0.6 percent to $96.25 at 8:01 a.m. in New York. The climbed 9.7 percent this year through Dec. 6, while the Standard & Poor's 500 Restaurants Index gained 23 percent.
The last time the company's U.S. same-store sales declined was in June.
'Competitive activity and relatively flat industry traffic trends negatively impacted performance' in the U.S., the company said in the statement.
To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net
To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net
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