Please ensure Javascript is enabled for purposes of website accessibility

McDonald's Hot August

By Alyce Lomax – Updated Apr 5, 2017 at 5:43PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The fast-food giant shows little sign of slowing.

McDonald's (NYSE:MCD) is still putting the "gold" in Golden Arches, judging by its success in August.

The fast-food giant's August total same-store sales increased by 8.1%, and Mickey D's displayed strength in all its geographic regions. U.S. same-store sales increased by 7.4%, European comps grew by 6.1%, and Asia/Pacific, Middle East, and Africa comps were up a stunning 12.4%.

In the U.S., McDonald's pointed to success with its breakfast business, beverages, and new food offerings. Abroad, the company said that special summer menu offerings and relevant marketing appealed to customers in Europe, with particular strength in France, the U.K., and Germany. In its Asia/Pacific, Middle East, and African region, Japan, Australia, and China were big contributors, and the company said that locally relevant menu promotions, extended hours, and breakfast contributed to the magic as well.

McDonald's seems to have its competitive edge well-honed. The global good news is heartening, and one might wonder whether some of its interesting initiatives -- like its strategies in Europe -- are helping it gain even more traction against veteran rivals like Burger King (NYSE:BKC), Wendy's (NYSE:WEN), and Yum! Brands' (NYSE:YUM) Taco Bell and KFC.

McDonald's almost seems a bit boring lately, but in a good way -- it keeps showing impressive growth despite its blue-chip status, rising from the ashes of its tough times a few years back. The company seems to be developing innovative ways to lure customers into its restaurants, then keep them coming back for more. And of course, given the value offered by McDonald's menu, it's probably got some resilience to current macroeconomic concerns.     

Read a slew of news articles on the topic, and you'll see that McDonald's shocked Wall Street analysts with August's strong performance, leading many to adjust their earnings expectations upward for this year. Any investors worried about the stock's stamina should be soothed by shares' 39% rise over the past year. With a successful turnaround under its belt, and an obvious willingness to evolve as it takes its business into the future, I'd call McDonald's a solid idea for investors seeking stable long-term stocks.    

Further Foolishness, hold the fries:

McDonald's is a dividend-paying investment, as are all the companies James Early recommends for Motley Fool Income Investor. To find out his latest recommendations, take a 30-day free trial.

Alyce Lomax does not own shares of any of the companies mentioned. The Fool's disclosure policy voted for Mayor McCheese.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

McDonald's Corporation Stock Quote
McDonald's Corporation
MCD
$245.95 (-0.80%) $-1.99
The Wendy's Company Stock Quote
The Wendy's Company
WEN
$19.07 (-0.37%) $0.07
Yum! Brands, Inc. Stock Quote
Yum! Brands, Inc.
YUM
$110.65 (-0.13%) $0.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.