McDonald's (NYSE:MCD) eked out a same-store sales increase for October, noting that its promotional game based on the board game Monopoly helped offset some negative factors, such as temporary store closings because of the major hurricanes. Despite the fact that it didn't deliver the most exciting increase in same-store sales, it's worthwhile to note that this does mark the 30th consecutive month that McDonald's has managed to deliver an increase in same-store sales.
The fast food giant said that overall same-store sales increased 3.4%, with a 3.3% increase in Europe (citing strength in France and Germany) and a 4.3% increase in Asia, the Middle East, and Africa. In the U.S., same-store sales increased by 3%.
Before saying that the increase was meager, it doesn't hurt to note that last year at this time, McDonald's reported a substantial increase in same-store sales -- and that was more impressive because it faced a strong comparison to the year before as well.
As stated above, McDonald's cited its well-known Monopoly game as a continued driver (it was last year, too). It probably doesn't hurt that McDonald's teamed with electronics powerhouse Best Buy (NYSE:BBY) to deliver prizes to lucky winners. Other factors included menu variety and extended hours.
It's no secret to many investors that McDonald's has managed to pull off a very impressive turnaround the last several years, despite the tough competition from rivals like Wendy's (NYSE:WEN) and Yum! Brands (NYSE:YUM), which are always trying to lure the same fast food fans to their restaurants.
McDonald's has proven to be a great stock for investors over that time, given the continued turnaround and the fact that it pays a dividend. It's now trading near its 52-week high and has a forward P/E ratio of 16. With comparisons getting continuously tougher, though, it stands to reason that at some point in the future, prospective investors might be able to get in at a better price.
Read these Foolish articles for a refresher course on McDonald's recent history:
- Take a look at Mickey D's earnings and quality.
- Hey, McDonald's is coming clean.
- Last month's same-store sales were looking up, too.
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Alyce Lomax does not own shares of any of the companies mentioned.
