I wonder if executives at Starbucks (SBUX) feel like a deer in the headlights of the freight train that is McDonalds (MCD).
McDonald's announced today that global comparable sales rose 6.5% in July, well ahead of the 4% estimates. Systemwide sales for all McDonald's restaurants (this number includes franchises) worldwide increased 11.7% for the month.
McDonald's Chief Executive Officer Jim Skinner said, "We continue to connect with customers through our menu variety and value, innovative marketing and contemporary restaurants. These combined initiatives have powered our ongoing momentum and delivered our best sustained sales performance in more than 25 years."
U.S. comparable sales rose 4.3% in July due to the enduring appeal of McDonald’s popular breakfast menu (COFFEE), new food offerings, value and convenient late night hours.
Comparable sales were up 9.9% in Asia/Pacific, Middle East and Africa, driven by ongoing sales strength in Japan, Australia and China. Breakfast (COFFEE) and extended hours contributed to the segment’s July performance.
Year to date system wide sales for McDonald's are up 11%. No excuses about rising coffee and milk prices, no new recording labels or free t-shirt giveaways, just performance quarter after quarter by focusing on what they do best..