Investors Are Not Loving McDonald’s New Sales Numbers

McDonald’s (NYSE:MCD) investors bought the rumor but are now selling the news. The stock has risen 6.7% over the past three months through Tuesday’s close, but despite beating expectations for same-store sales, shares are trading lower today.

McDonald’s announced global comparable sales growth of 6.7 percent in January — beating its own estimates for 5.5 to 6.5 percent growth, as well as analysts’ expectations for 6.5 percent growth. Segment-wise sales growth was 7.8 percent in the U.S., 4.0 percent in Europe, and 7.3 percent in the Asia Pacific, Middle East and Africa (APMEA).

Growth in the U.S. was driven by more wholesome breakfast choices, popular beverages, classic core favorites and a newly introduced menu item, Chicken McBites. Europe posted positive growth in spite of economic challenges, driven by the core menu options, rotation of premium and mid-tier offerings, and restaurant re-imaging. The Chinese New Year boosted sales in China and other markets, while food events, value platforms for breakfast and lunch, and customer convenience also contributed to the segment’s growth.

“January marks another month of sustained sales growth, demonstrating the ongoing appeal of McDonald’s winning combination of value, menu variety and convenience,” said Chief Executive Officer Jim Skinner.  “Our focus on enhancing the McDonald’s experience through great-tasting, affordable food and beverage choices served in increasingly modernized restaurants is helping make McDonald’s our customers’ favorite place and way to eat and drink.”

McDonald’s is the world’s leading global food-service retailer, with more than 33,000 locations serving nearly 68 million customers in 119 countries each day. More than 80 percent of McDonald’s restaurants worldwide are owned and operated independently.

Here’s how shares of McDonald’s are reacting to the news:

McDonald’s Corp. (NYSE:MCD): MCD shares recently traded at $100.21, down $0.7, or 0.69%. They have traded in a 52-week range of $72.89 to $102.22. Volume today was 1,687,293 shares versus a 3-month average volume of 5,460,150 shares. The company’s trailing P/E is 19.03, while trailing earnings are $5.27 per share.