Mickey D's May comps increased 5.1% worldwide -- but most of the strength came from abroad. European comps surged 7.6%, and comps in the Asia/Pacific, Middle East, and Africa rose 6.4%. The U.S. was the laggard, with comps only increasing by 2.8%.
Thanks to all those foreign sales and a weaker dollar, McDonald's also said currency translation will continue to take a bite out of its results. The company expects an $0.08-to-$0.09-per-share chomp out of earnings for the second quarter, and $0.20 per share for the year, if current trends remain the same.
It seems investors took this news a bit hard, but then again, there's a little more pessimism in the market today in general. May's retail comps data released last week showed that American consumers remain unwilling to spend money. Given that, McDonald's May data looks pretty darn good.
McDonald's has been doing consistently well despite economic turbulence, and like discounter Wal-Mart
In other words, McDonald's investors should focus on the company's strong, consistent performance in a difficult climate, rather than sweating the short term. When it comes to solid long-term stock ideas, McDonald's isn't clowning around.
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