Same Store Sales #'s-Be Careful
Headlines this morning:
McDonald's May same-store sales rise 7.7 percent
Monday June 9, 8:10 am ET McDonald's May same-store sales rise 7.7 percent, US same-store sales jump 4.3 percent
OAK BROOK, Ill. (AP) -- McDonald's Corp., the nation's No. 1 hamburger chain, said Monday its global same-store sales rose 7.7 percent in May.
The company said U.S. same-store sales, or sales at locations open at least a year, grew 4.3 percent.
SSS in U.S. up only 4.3%. Do you think costs at the store level are up only 4.3%? Food costs and fuel costs are probably up around 15-20%. Foreign sales are butressed by currency exchanges.
Again positive SSS are better than negative, but negative nonetheless when costs are rising faster than sales.