McDonald's Same-Store Sales Fall: Was It the Weather or the Competition?

McDonald's Same-Store Sales Fall: Was It the Weather or the Competition?

McDonald's reported a same-store sales drop for the month of February, which has caused concern among investors. The company cited both competition and the harsh winter weather this year as reasons for the decline, particularly in the North American market. In this video from Monday's Stock of the Day, however, Motley Fool analyst Taylor Muckerman expresses his doubts that the weather can really be blamed here and sees competition as a much more damaging factor. While McDonald's thrived during tighter financial times just after the recession, Taylor notes that the fast-casual dining space now has a multitude of options that are just as fast as McDonald's, but healthier, tastier, and not too much more expensive.

One of the bigger questions may be where McDonald's is going to find growth from here. While the company is still doing well in Europe, that was the only major geographical region where the company saw growth. The U.S. was once the bread and butter of the company and is now showing a continuing trend of decline. While Taylor notes that continued growth in Europe could be a driver for the company going forward, the slowing performance in the world's other markets is definitely a concern. While the stock is stable and pays a nice dividend, it has lagged the S&P significantly over the last year, and Taylor isn't a buyer of McDonald's today.

How can you profit from an increasingly global world?
U.S. automakers boomed after WWII, but the coming boom in the Chinese auto market will put that surge to shame! As Chinese consumers grow richer, savvy investors can take advantage of this once-in-a-lifetime opportunity with the help from this brand-new Motley Fool report that identifies two automakers to buy for a surging Chinese market. It's completely free -- just click here to gain access.

The article McDonald's Same-Store Sales Fall: Was It the Weather or the Competition? originally appeared on

Erin Kennedy and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool recommends and owns shares of McDonald's. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published