McDonald's reported a 2.2% drop in comparable store sales in November, bigger than the 1.7% drop that analysts' expected. Comparable store sales fell 4.6% in the U.S., 2% in Europe, and 4% Asia Pacific, Middle East, and Africa (APMEA). The sales decline isthe company's worst in more than a decade, according to Bloomberg.
The company said it saw strong sales in its Other Countries & Corporate segment, which includes Canada and Latin American countries, which helped pull up comparable store sales.
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McDonald's warned that the weak sales, a supplier issue in China, and the strength of the U.S. dollar against foreign currencies may negatively impact its fourth quarter results. The company expects the Chinese supplier issue to have an impact of 7 cents to 10 cents on its quarterly results, and the strong U.S. dollar to have a negative impact of 7 cents to 9 cents for the quarter.
TheStreet Ratings team rates MCDONALD'S CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCDONALD'S CORP (MCD) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."