Doors Floors and More

Cited: Reuters

McDonald’s was helped by a new summer drinks, Smoothies, in the United States and longer hours in Europe to beat Wall Street forecasts for July as well as lifting their shares higher than ever. According to McDonald’s, global sales at restaurants that had been open for 13 months rose 7% in July which is better than analysts expectations for an increase closer to 5%.

The strong sales show McDonald’s is succeeding in reinventing its menu and image, winning new diners in a weak economy that has hurt rivals, analysts said.

“Over the last several years, they’ve been very successful at improving the quality of their food,” said Stifel Nicolaus & Co analyst Steve West. “They’ve really invested in their brand.”

While U.S. high unemployment persists, the fast food company’s appeal to families and retirees has helped it steal market share from chains like Burger King (BKC.N) and KFC, which is owned by Yum Brands Inc (YUM.N).

“McDonald’s has more broad-based appeal. They’re not as exposed to single white males,” West said, noting that group has been particularly hard-hit by the economy. “McDonald’s is appealing to soccer moms. They’re appealing to high-end consumers.”

U.S. sales, which account for about 35% of the company’s business, benefited from the introduction of Real Fruit Smoothies and Frappes from its McCafe line of drinks.

A record-setting heat wave in parts of the country and an extra Saturday in July also fueled the 5.7% rise in U.S. same-restaurant sales, said Edward Jones analyst Jack Russo.

Shares of McDonald’s were up 1.5% at $72.85 in afternoon trading on the New York Stock Exchange. Earlier in the session, the shares reached $73.33, an all-time high since the chain went public in 1965 at $22.50 per share. Burger King rose 1.1% while Yum gained 1%.

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EUROPE, ASIA ON THE RISE

In Europe, same-restaurant sales rose 5.3%, led by gains in France, Britain and Germany. McDonald’s has been renovating restaurants and extending hours in the region, which was the largest revenue contributor last year at 41%.

Same-store sales rose 10.1% in the Asia/Pacific, Middle East and Africa area. The company said Japan, Australia and China were standouts. Nearly 8,500 of McDonald’s 32,500 restaurants are located in that region, which contributed nearly 20% of its revenue in 2009.

McDonald’s plans to double its network in China to more than 2,000 outlets by 2013.

System wide sales rose to 6.8% or 8.3% on a constant currency basis.

McDonald’s said last month that the U.S. roll-out of espresso-based coffee and other high-margin drinks like Frappes had exceeded the company’s goal of adding $125,000 of sales per unit.

By expanding its business in the beverage area, McDonald’s was seen as attacking the core business of copy shop chain Starbucks Corp (SBUX.O). However, both companies appeal to different customers where beverages are concerned.

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My Take: The one thing I like about McDonald’s is it their community conscience. They hope local schools get kids desks and other school furniture they are in need of like whiteboards Canada. They also help needy kids and kids who have terminal illnesses. The one thing I do not like about McDonald’s and that they used too much lettuce on their big Macs!

I have even seen some of the kids meals come with tooth brush and toothpaste to help encourage the kids to brush regularly. That way they don’t have to go to Virginia dentist and get cavities taken care. I do not know if this is true or not but I heard recently that McDonald’s help a kid who had a cleft palette by paying a South Riding VA cosmetic dentist to repair it.

So, McDonald’s has improved sales with new drink “Smoothies”. That is great because they spend some of those millions of dollars on people who really need it. And yes, I do you think macula once while with their delicious french fries.

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Cited: Associated Press

It seems that retail sales and clothing fell in November, but online sales came back with a boom. It seems that the strategic discounting that retailers are using our luring shoppers back. Retail sales did show signs of improvement in early fall, but clothing and luxury items weakened a bit the first half of November in comparison to year ago when shoppers were lured in by massive amounts of discounts.

Electronics sales have grown solidly this month, however, compared with the first half of November last year, when stores didn’t discount electronics as much. And online sales, where growth had slowed this year, are roaring back.

“It was a little bit softer,” said Michael McNamara, vice president at SpendingPulse, referring to the weak apparel and luxury figures. He cautioned against comparing the first half of November this year and last very closely.

“When you think about the discounts last year, they were broad-based emergency discounting.” Last year’s discounts encouraged consumers to spend more early in the holiday shopping season than this year’s more restrained — though ubiquitous — promotions.

“While there are some great deals, retailers are in a much better position and are more strategic with their discounting,” McNamara added.

SpendingPulse found that sales of women’s clothing fell 3.3%; sales at department stores fell 7.1%; footwear sales slipped 1.5%; and men’s apparel sales dipped 1% for the period from Nov. 1 to Nov. 14.

Overall apparel sales rose in October after many months of declines starting in July 2008. Luxury sales, which rose in September and October, had shown declines since August 2008. Online sales, where the figures haven’t shown a monthly decline since the recession started in late 2007, did taper in the spring.

But e-commerce is enjoying a rebound now, with sales up 19.4% the first half of the month. Online sales rose 5.2% in July, 12% in August, 15% in September and 18.7% in October, McNamara said. McNamara said this year’s rising gas prices have helped online sales because shopping online lets consumers drive less.

Electronics sales rose 6.1% the first two weeks of this month, helped in part by coupons and other enticements that retailers like Best Buy Stores Inc. offered to boost sales. Electronics sales rose 5% in September and I.2% in October, compared with a year earlier, McNamara said.

Major department stores like Wal-Mart stores Inc., Sears Roebuck & Co. and Toys “R” Us already are utilizing deep discounts that are usually reserved for the day after Thanksgiving, Black Friday, when holiday shopping usually begins in earnest. In fact, many retailers began advertising in earnest for holiday spending early this year.

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My Take: It is only logical that online sales rise; they do not have any other way to go. There are a lot of clothing stores but not advertise on the Internet because that is where most people look for sales. In the article is correct in that people are looking for ways to avoid using gas because it’s too expensive. That leaves Internet shopping.

You can go online and find pop culture T shirts for the same price if not cheaper than in-store shopping. In fact some of those same T-shirt retailers offer custom T shirt designs that you cannot get in-store. The only problem with buying clothing online is if you get the wrong side so unique and make sure you do get the right size.

Buying clothes online is not like buying sports tickets online. Clothing, like sexy costumes, can be difficult to return if there is something wrong. The main thing is that you have to pay for the shipping and handling to return. However, you can get the R & B tickets online and it is the best way to purchase them to avoid long lines. Clothing like Halloween costumes will probably be cheaper after Halloween.

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