Despite all warnings regarding health issues and high content of calories, people still buy fast food. The fact is that considering the present-day economical environment, buying fast food is most convenient. The tendency is clearly shown by McDonald’s, which reported higher sales than what analysts expected.
This Thursday, McDonald’s released data regarding its global sales. The figures show that the fast food chain’s global sales have increased 7.4 percent at restaurants open at least 13 months. An in-depth look at the earnings report shows that the increase was not consistent in all regions of the world.
The company’s U.S. sales for November went up by 6.5 percent, 1.3 percent higher than the analysts’ forecasts. Although the company says that its sales have been high despite high unemployment and sluggish economy, the truth is that it boomed thanks to them.
In troubled Europe, McDonald’s restaurants rose 6.5 percent, almost double than what analysts with Thomson Reuters expected. The company explains that behind the growth are competitive prices, new products and restaurant renovations. At the same time, the chain’s high end priced products have been quite popular in the European markets.
Emerging markets have also brought impressive gains for the fast food chain. Sales in Asia, Pacific, Middle East and Africa rose 8.1 percent, almost double than the 4.9 percent increase analysts were expecting. These markets are particularly important for the company as it still has to compete with KFC and Pizza Hut for the leader status.
According to the company sales for China and Japan have been outstanding. McDonald’s is planning to open 250 new locations in China next year. Peter Saleh, analyst with Telsey Advisory Group, said that at the moment McDonald’s is focused on opening free-standing locations with drive throughs while KFC’s Yum is in more strip malls.
The present day McDonald’s sales are good news for the company’s management. Earlier this year, the burger chain missed analysts’ growth estimate and for the second quarter of the year it reported an income increase of 15 percent.
All in all, McDonald’s is still outperforming its competitors, regardless of the economic context or world region.