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alstry (< 20)

Same Store Sales #'s-Be Careful



June 09, 2008 – Comments (3)

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.

3 Comments – Post Your Own

#1) On June 09, 2008 at 10:10 AM, mandrake66 (76.93) wrote:

McDonald's has much better control of its costs than most restaurants. It would surprise me if they hadn't locked in long-term contracts for many of their inputs, and through sheer volume can bully suppliers on the rest. I'm sure they're hurting along with the rest, but far less so. I'll be interested to see their quarterly results, but I'm guessing they won't be a disaster.

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#2) On June 09, 2008 at 11:11 AM, alstry (< 20) wrote:

How hard do you think MickyDs can bully the utility companies?

At some point, the BigM needs its suppliers to stay in buisness as well.

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#3) On June 09, 2008 at 7:27 PM, hansthered0 (< 20) wrote:

It's all because of those new McCoffee's...They're not even good but you can get a latee with your lunch and it's uber fast...

Maybe Starbucks should start selling hamburgers?

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