Big Turnaround for McDonald’s Sales

By (Chris Preston),

Shutterstock photo

It hasn't been a great year for the world's largest fast-food chain.

McDonald's ( MCD ) shares have plummeted more than 10% in 2012, held down by its first declining sales figures in almost a decade. But last month may have signaled a turnaround for the burger giant.

Globally, McDonald's same-store sales increased 2.4% in November - well ahead of the mere 0.2% improvement analysts were expecting. Same-store U.S. sales were even better last month, rising 2.5%.

The better sales numbers boosted MCD shares up a full percentage point today. The stock is actually making a bit of a late-year comeback after gaining 5.5% in the last month, though its 10% dividend hike in late November likely had a lot to do with that.

The company's November turnaround shows that its new strategy is working. After reporting a 3.5% year-over-year decline in its third-quarter earnings, McDonald's vowed to ramp up advertising on its "Dollar Menu" to meet consumer demand for cheaper food.

So far the strategy seems to be working.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
Referenced Stocks: MCD

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