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Still Lovin' McDonald's

Who's still lovin' the Golden Arches? Pretty much everyone, it would appear. Just when you wonder whether McDonald's (NYSE: MCD  ) can keep up its streak of rapidly rising sales, the October numbers come in and provide the answer: Yes.

Sort of.

For the month, total systemwide sales increased 9.5%, or 7% if you strip out the benefit of currency changes. Same-store sales increased a slimmer 6.1%. This represents a bit of a slowdown from last year's gains, but it's still solid, especially considering the mileage the firm has been getting from its more modest sales gains. When you squeeze 42% earnings growth out of 9% upticks in sales, you're doing plenty of things right.

For what it's worth, the firm gave credit for increased traffic to its Monopoly giveaways.

I'm betting it's more than that. Need some proof? Consider the meager 2% October comps growth at rival Yum! Brands (NYSE: YUM  ) . And compared with the near 6% drop at competing burger joint Wendy's (NYSE: WEN  ) , Mickey D's performance looks even better. It seems only retro-themed Sonic (Nasdaq: SONC  ) can hold a candle to the original burger chain these days, though we haven't seen that firm's latest sales numbers.

With a tasty, 1.8% dividend and continued excellent execution, McDonald's looks like it would make a healthy addition to any portfolio.

For related Foolishness:

Seth Jayson thinks he will be unable to resist his McDonald's craving today. At the time of publication, he had positions in no firm mentioned. View his stock holdings and Fool profile here. Fool rules are here.


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Related Tickers

2/13/2012 4:00 PM
WEN $5.20 Down -0.01 -0.19%
The Wendy’s Compan… CAPS Rating: ***
YUM $64.58 Down -0.16 -0.25%
Yum! Brands CAPS Rating: ****
MCD $99.65 Up +0.18 +0.18%
McDonald's Corp CAPS Rating: ****
SONC $7.82 Up +0.04 +0.51%
Sonic Corp CAPS Rating: ***

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