McDonald's Rebound Story Continues - TheStreet

McDonald's Rebound Story Continues

The fast food giant registers a 12.3% increase in overall U.S. sales, as the company's rebound continues.
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Updated from 9:58 a.m.


(MCD) - Get Report

built on its recent rebound Monday, saying U.S same-store sales posted double-digit growth for the third consecutive month, while overall U.S sales rose 12.3% and were the highest of any November in its history.

The highflying stock backed off, however, as investors took profits.

The company said overall November comparable-store sales rose 6.4%, helped by new menu items and extended hours for its dollar menu, the eighth straight month of gains.

Overall sales increased 14.9%, while on a constant-currency basis, sales rose 8.2%.

In October, the company reported a 15.1% increase in same-store sales, the largest monthly increase in five years. The company also had record sales during that month.

"While we still have work to do, our momentum continues as we maintain focus and discipline on what counts most -- our customers and restaurants," said Chief Executive Jim Cantalupo in the company's news release Monday

In November, same-store sales in the U.S. alone were 10.2% higher, while total sales increased 12.3% to a monthly record.

In Europe, total sales spiked 18.3%, or 4% rise in constant currencies. Comparable-store sales in Europe rose 1.9%. Sales in that region have now increased in three of the past four months.

And in Asia, the company had a 4.1% increase in comparable-store sales, while total sales rose 16.2%, or 4.4% in constant currencies.

The company said that in the next few weeks it will provide estimated charges for its restructuring plan and announce final decisions on partner brands.

In April, the company announced a revitalization plan that focused on cutting debt, slowing expansion and improving both its food and service.

Shares have almost doubled since then. After hitting a 52-week low of $12.12 in March, the shares recently cost $25.79, down 20 cents, or 0.8%, from Friday.

In the third quarter, the company reported record earnings of 43 cents a share, with net income of $547 million on sales of $5.58 billion.

McDonald's will report earnings for the fourth quarter and full-year on Jan. 27.