LEX Sometimes even a value meal doesn’t cut it. McDonald’s comparable sales for November showed weakness globally, even though the fast-food chain has generally succeeded in winning market share in the slump. US sales unexpectedly fell, as rising unemployment hit breakfast sales in particular and rivals ramped up cut-price marketing campaigns. Previously strong European sales managed only 2.5 per cent growth, half what was expected. And despite their positive macroeconomic gloss, emerging market sales contracted.
Adjust for the number of trading days month-to-month, however, and underlying trends look broadly similar to October, Deutsche Bank points out. In Asia, last November’s 13 per cent growth set a high bar to beat. But another poor month in China, where McDonald’s is a more upmarket choice than on home turf, suggests consumer confidence is lagging behind improvements in output – particularly in the coastal regions where McDonald’s has many of its restaurants.
