McDonald's CEO: Co Will Do Better After Economic Recovery
By Jon Kamp, Of DOW JONES NEWSWIRES
BOSTON -(Dow Jones)- McDonald's Corp. (MCD) is not merely doing well because
it has cheap offerings that attract newly frugal customers during a recession,
and the company will benefit when the economy improves, Chief Executive Jim
Skinner said Tuesday.
"We expect to be stronger coming out of the recession," Skinner told reporters
following an address at a Boston College Chief Executives' Club of Boston
luncheon.
Skinner also said he personally believes U.S. unemployment will reach or
exceed 10%, up from 9.8% today, and said he doesn't anticipate consolidation
among the fast-food industry's major players. Breakfast sales have been affected
by unemployment, though breakfast remains "up" and is being promoted, he said.
"We're not interested in giving up business that time of the day," Skinner
said.
The fast-food giant topped expectations in the third quarter and has been
helped by new premium items like McCafe coffee and Angus burgers. Still, Skinner
said people believe the company's performance during the economic downturn is
related to consumers trading down to the company's "dollar menu" of low-cost
items.
"The customer profile has really stayed the same," the executive said, while
answering questions from luncheon attendees.
"We'll do better when the recession is abated and we start to see growth again
in jobs and consumer confidence," he added. "We operate better in a robust
economy."
McDonald's shares recently traded down 0.7% to $58.79.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com
(END) Dow Jones Newswires
10-27-091445ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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