Big Turnaround for McDonald’s Sales

Wyatt Investment Research

It hasn’t been a great year for the world’s largest fast-food chain.

McDonald’s (MCD) shares have plummeted more than 10% in 2012, held down by its first declining sales figures in almost a decade. But last month may have signaled a turnaround for the burger giant.

Globally, McDonald’s same-store sales increased 2.4% in November – well ahead of the mere 0.2% improvement analysts were expecting. Same-store U.S. sales were even better last month, rising 2.5%.

The better sales numbers boosted MCD shares up a full percentage point today. The stock is actually making a bit of a late-year comeback after gaining 5.5% in the last month, though its 10% dividend hike in late November likely had a lot to do with that.

The company’s November turnaround shows that its new strategy is working. After reporting a 3.5% year-over-year decline in its third-quarter earnings, McDonald’s vowed to ramp up advertising on its “Dollar Menu” to meet consumer demand for cheaper food.

So far the strategy seems to be working.



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