McDonald's August Sales Slowing

NEW YORK (TheStreet) -- McDonald's(MCD) is slipping Thursday morning, as the fast-food retailer reported a big miss in European August sales and U.S. slows.

By region, sales in the U.S. grew 4.6%, Europe rose 2.2% and surged 7.8% in Asia, Middle East and Africa.

McDonald's attributed its growth in the U.S. during the month to strong sales of smoothies. The company has made a big push with beverages, including its coffee offerings from its McCafe.

The overall number is down from July's 5.7% increase, the highest level McDonald's has reached since August 2009.

The biggest drag on the month was no doubt Europe, with France most likely being the major culprit. The country lowered its value-added tax on restuarant meals from 19.6% to 5.5%, creating a tougher comparison with August 2009.

Shares of McDonald's are falling 3% to $73.80 in morning trading.

--Written by Jeanine Poggi in New York.

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