People aren't eating enough Big Macs to satisfy Wall Street

[marmar]

(Bloomberg) McDonald’s Corp. (MCD), the world’s largest restaurant chain, said sales at stores open at least 13 months rose 3.1 percent last month, falling short of analysts’ estimates as U.S. consumers pulled back spending.

Analysts projected same-store sales would advance 3.6 percent, according to the median of six estimates compiled by Bloomberg News. U.S. sales advanced 2.4 percent, the Oak Brook, Illinois-based company said today in a statement.

McDonald’s, along with other food operators, has faced surging ingredient costs over the past year and increased prices to help offset food inflation. Chief Executive Officer James Skinner said sales climbed 2.3 percent in Europe and increased 4.3 percent in Asia, Africa and the Middle East.

April comparable-store sales advanced 6 percent globally. Comparable, or same-store, sales is a key measure of a company’s growth because they exclude the impact of store openings and closings. ............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-06-08/mcdonald-s-may-sales-rise-3-1-globally-as-u-s-growth-slowest-in-a-year.html

[Autumn]

1. I haven't had a Big Mac in 20 years

I don't plan on having one any time soon.

[pipi_k]

3. About 12 - 13 years for me...

My favorite was the Quarter Pounder w/cheese anyway.

Now I do the fish or chicken sandwiches, and even those I only have about 4 times a year.

[HopeHoops]

6. I can honestly say that as well - I've been a vegetarian for longer.

Besides, I stopped eating at McDonald's a LONG time before going vegetarian.

[kick-ass-bob]

2. I've been eating fast food too much lately.

Up to 2x a week. All at chain places (the whole family).

I'm trying to cut us back to going out 2x a month and to local restaurants and not chains, so the local folks get more of the $$$, and still save myself some money.

[WatsonT]

4. Maybe because they're overpriced and terrible

There are plenty of local burger joints where I live that are at least comparable in price if not better and vastly superior in quality and service.

[HopeHoops]

5. Why would food costs impact McDonald's? They don't serve anything that qualifies for food.

[Brickbat]

7. I knew we were in trouble many years ago when financial reports started saying things like "sales

rose" and "profits were up" coupled with "disappointing analysts who had expected" and "falling short of Wall Street estimates" and "disappointing industry shareholders."

[NYC_SKP]

8. Exactly.

This article makes your point.

If a business isn't growing at double digit rates, it's failing.

To get those rates, businesses gobble up other smaller businesses (Walmart, Starbucks) until the competition is gone.

Sooner or later the shit hits the fan.

Unsustainable economic models.