McDonald's Shares Slump on August Sales Dud

FOXBusiness

McDonalds (NYSE:MCD) disclosed on Friday a 3.5% increase in global same-store sales in August, but the worlds largest fast-food chain failed to meet Wall Streets expectations amid sluggish sales in Europe the slowing global economy.

Disappointment over the results sent shares of Oak Brook, Ill.-based McDonalds sliding roughly 3% in early trading.

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The Dow component said its global same-store sales increased 3.5% last month, compared with expectations for stronger growth of 4.3%.

In the U.S., sales rose 3.9% in August, slightly missing forecasts from analysts for a jump of 4%. Sales in Europe inched up 2.7%, badly trailing the Streets view of 4.7%.

McDonalds suffered declines in normally fast-growing markets as same-store sales in Asia/Pacific, Middle East and Africa slipped 0.3%.

Still, McDonalds said August marked its 100th consecutive month of positive global comparable sales.

Jim Skinner, the companys CEO, said the achievement demonstrates the ongoing customer appeal of McDonald's great tasting food, offered at an outstanding value in our modern and convenient restaurants.

Shares of McDonalds declined 2.95% to $86.00 Friday morning, making them the worst performers on the Dow Jones Industrial Average. The declines will eat into the stocks gain of more than 15% so far this year.

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