McDonald's same-store sales soared 6.5% in October. Broken down by region, U.S. same-store sales grew 5.6%, Europe rose 5.8%, and Asia/Pacific, Middle East and Africa jumped 5.3%.
Although some investors and analysts got bummed out by the weaker-than-expected U.S. figure, a 5.6% comps increase sounds pretty solid to me. Mickey D's management attributed some of the U.S. sales success to Monopoly's return.
McDonald's still faces a few flak attacks, judging by a recent San Francisco backlash against Happy Meals, but it's still a strong performer. It's competing admirably against traditional fast-food joints like Yum! Brands
McDonald's price-to-earnings ratio of about 18 is a good bit lower than that of rival Yum! Brands. Yet its solid performance also beats out laggards like struggling Sonic
Short-term negativity about McDonald's performance in the U.S. in October seems silly. Given the fast food giant's strong numbers, especially in a lackluster economy plagued by high unemployment, Fools should always make room for McDonald's in their long-term portfolios. If you'd like to follow the Golden Arches' sizzling progress, add the company to My Watchlist by clicking here.
Alyce Lomax owns shares of Starbucks. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.
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