McDonald's is back in business with a November same store sales report that beat expectations and showed growing strength for the popular fast-food franchise, according to reports.
According to the Chicago Tribune, after a week performance in October that had investors speculating about the future of McDonald's, its U.S. same store sales was up 2.5 percent on the strength of its breakfast business, value offerings, beverages, and limited-time offers like the cheddar bacon onion sandwich.
The sales also went up in Europe by 2.4 percent, beating expectations. Company stock rose nearly 1 percent in early morning trading, to $89.35.
"We are strengthening our focus on the global priorities that are most impactful to our customers -- optimizing our menu, modernizing the customer experience and broadening accessibility to our brand to move our business forward," McDonald's CEO Don Thompson said in a statement.
While increased November sales is great news for the Oak Brook-based burger giant, the Chicago Tribune report said that investors don't expect company performance to return to normal levels until early 2013. Winter is typically slow for fast-food chains, while the summer is the busiest season.
McDonald's has been struggling because of increasing competition and uncertain global economy. According to the Washington Post, global revenue fell 1.8 percent in October of restaurants open at least 13 months.
Long time rivals such as Burger King and Wendy's Co. are reviving their brands with improved menus and new TV ad campaigns. Taco Bell is also seeing improved growth sparked by new offerings such as Doritos Loco Tacos and higher-end Cantina Bell bowls and burritos. This especially appeals to people who are tired of eating burgers and French fries.
There has been increase popularity to restaurants such as Chipotle Mexican Grill and Panera Bread, which offer better-quality food for a little more money, according to WP. Also the rise of chains such as Subway and Starbucks has changed the fast-food landscape over the past few years, giving customers more options of what time of food they want.
McDonald's has responded by renovating some stores and expanding its value menu and adding other food items to the menu, according to WP, but will it be enough to keep customers happy? What do you think? Sound off below!
