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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
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