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McDonaldâ€™s July Sales Trail Analystsâ€™ Estimates

16 August 2012 11:32 (UTC +04:00)

Analysts projected an increase of 2.3 percent, the average of 14 estimates compiled by researcher Consensus Metrix. Sales at domestic locations fell 0.1 percent, Oak Brook, Illinois- based McDonaldâ€™s said today in a statement. Analysts estimated a gain of 2.2 percent for the U.S.
McDonaldâ€™s has tried to lure customers with a menu of items priced at $1 to $2 in the U.S. as rivals including Yum! Brands Inc. (YUM)â€™s Taco Bell and Wendyâ€™s Co. (WEN) increase promotions and add menu items. McDonaldâ€™s U.S. sales decline was the weakest performance since January 2010, worsened by Americans pulling back spending amid flagging consumer confidence.
â€œA lot of their competitors have stepped up their game,â€ Sara Senatore, a New York-based analyst at Sanford C. Bernstein & Co., said in an interview.
McDonaldâ€™s fell 1.7 percent to $87.53 at the close in New York. The shares have slumped 13 percent this year.
Sales and promotions failed to make up for the effects of the â€œsluggishâ€ economy in the U.S., the company said in the statement.