McDonald's November Was Not One to Remember
Fast-food colossus McDonald's disappointed investors yesterday by reporting unimpressive traffic and sales numbers for November.
McDonald's did relatively poorly in the United States, with comparable-store sales showing a 0.8% decline. Wall Street had expected an increase of 0.3%. That indicates slower traffic for McDonald's. The company's Asia-Pacific segment was also dragged down by poor numbers from Japan, where sales have been weak for more than six months.
McDonald's could be facing long-term headwinds in the United States. Fast-food workers have recently been pushing for a significantly higher minimum wage, and companies like McDonald's don't have the pricing power to pass along those higher costs to consumers.
Despite this, Motley Fool analyst Jason Moser thinks McDonald's is a great stock for income investors. It's likely to continue paying its steady, reliable dividend for years to come.
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The article McDonald's November Was Not One to Remember originally appeared on Fool.com.Erin Kennedy has no position in any stocks mentioned. Jason Moser has no position in any stocks mentioned. The Motley Fool recommends Burger King Worldwide and McDonald's. The Motley Fool 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.
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