041137 U.S. Sales Boost McDonald's

Oak Brook, IL - McDonald's reported another month of strong worldwide sales, sending its stock to its highest level in nearly three years.

The world's largest restaurant company said sales from restaurants open more than a year rose 6.1% worldwide and 7.5% in the United States, where its Best Chance Monopoly game boosted results for a second straight October.

The monthly gains were less spectacular than the ones reported a year ago, when McDonald's had easy comparisons against a down year in 2002. But they demonstrated the fast-food chain's continuing strength when some analysts had expected its comeback to be running out of steam.

McDonald's said same-store sales rose 2% in Europe, where they remained affected by a sluggish German economy, and 6.1% at Asian, Middle Eastern and African locations.

Systemwide sales for all of McDonald's more than 30,000 restaurants worldwide were 9.5% higher than in October 2003, or 7% discounting the benefits of the weak dollar.

With its popular "I'm Lovin' It" global advertising campaign and new menu items such as entree-size salads and fried chicken strips, McDonald's has reversed sluggish U.S. sales trends and gained market share from rivals like Wendy's International for nearly two years.

Privately held Burger King, the No. 2 hamburger chain, last week said October same-store sales at its U.S. restaurants rose 6.9%, helped by marketing and new product introductions.

Turnarounds at both McDonald's and Burger King have hurt Wendy's, which last week reported a 5.8% drop in same-store sales at its company-owned restaurants in October.

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