McDonald's Corp., the world's largest restaurant company, reported August sales that rose more than some analysts estimated as consumers battered by higher gasoline and grocery bills bought $1 sodas in the U.S. and snack-sized chicken wraps in France.
Global sales at restaurants open at least 13 months climbed 8.5 percent compared with a year earlier, helped by an 11.6 percent gain in Europe and the dollar's decline against other currencies, the Oak Brook, Illinois-based company said today. The shares rose as much as 3.6 percent in New York trading.
The global increase was the biggest since February and signals Chief Executive Officer Jim Skinner's strategy to promote lower-priced items in the U.S. and Europe is winning cash-strapped customers from Burger King Holdings Inc. and Wendy's International Inc. Those chains boosted advertising of discount foods last month after posting slower same-store sales growth than McDonald's in the quarter through June.
Europe's gain ``was particularly important in assuaging investor concern about slowing macros in that region,'' John Glass, a Morgan Stanley analyst in Boston, wrote today in a note to investors. He recommends investors buy McDonald's shares.
/ Source: Bloomberg
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