So you thought MacDonalds was in a good position to pickup pickup business in the downturn. Think again!
minyanville.com April 22, 2008
Minyanville - NEWS & VIEWS-Article: "McDonald's (MCD) was out with earnings this morning. Apparently, folks trading down are skipping past McDonald's. Look, who can afford to let their car idle in a drive-thru lane these days?
Three reasons we're concerned with MCD: 1) international growth, which was good with global comparable sales driving earnings this quarter 2) commodity pricing pressures (yep, still tough out there) and 3) comments on the macro economy considering the fact that, in our view, the company was well-positioned as a key beneficiary of the 'trade-down' effect in a weakening economy.
Unfortunately, the company's U.S. comps were slightly negative, which suggests the economic downturn may be steepening. That marks the first drop in U.S. comp sales in five years."
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