McDonald’s Q4 saved by McRib sandwich
McDonald’s, battling a weak economy and taxed customers, eked out a small gain in fourth quarter pro…McDonald’s, battling a weak economy and taxed customers, eked out a small gain in fourth quarter profits — thanks to its dollar menu and its dreamy McRib sandwich.
But folks weren’t exactly busting down the doors — same-store sales edged up a minuscule 0.3 percent in the period.
The fast food chain warned investors that sales this month would be even weaker, perhaps declining over last year as the increased payroll tax steals cash from customers.
At the same time, other big chains, including Burger King, Wendy’s and Taco Bell, have been nibbling away at McDonald’s customer base during the recession with numerous dollar-menu items, such as Taco Bell’s 99-cent nacho griller.
McDonald’s said it intends to fight back with a $3.2 billion marketing budget in 2013 that includes opening 1,600 new stores worldwide.
It will also launch more low-priced items such a Fish McBites, due next month.
McDonald’s shares closed up 0.6 percent, to $93.48.
