McDonald’s October Same-Store Up 8.2%
Oakbrook, Ill. McDonald’s Corp. said Monday its global same-store sales jumped 8.2% in October. The increase beat the company’s own prediction for a rise similar to the one it recorded in its last quarter, when same-store sales rose 7.1% worldwide.
The results were a bright spot in what was generally a dismal month for most restaurant operators. Many chains have reported steep declines in same-store sales during October as consumers grew more anxious about their spending.
Same-store sales rose 5.3% in the United States, helped by the introduction of new menu items.
“McDonald’s strong October sales show that we are delivering what customers count on from McDonald’s—choice, variety and high-quality food and beverages at affordable prices,” chief executive Jim Skinner said in a statement.
Study: Organic market not recession-proof
CHICAGO According to Mintel, the market for organic foods and beverages should reach $7.2 billion in 2008, an increase of over 140% from the $3.0 billion recorded during 2003. But year-over-year, Mintel has seen sales growth slowing. With many Americans now struggling financially, Mintel projects that sales of organic foods and beverages will not rally anytime soon.
“Rising food and gas prices, the credit crunch and economic uncertainty have deeply affected people’s shopping habits,” comments Marcia Mogelonsky, senior analyst at Mintel. “Across the board, Americans are spending less and ‘organic versus traditional’ is a decision many people are thinking about carefully.”
People are also saving money by reaching for private label organics, which have exploded in recent years. Mintel’s Global New Product Database (GNPD) tracked over 540 new private label organic foods in 2007, a massive increase from the 35 new products seen in 2003. Furthermore, when Mintel asked survey respondents about the difference between name brand and private label organics, three in five (60%) said it didn’t matter, that they reached for “whatever is available” when shopping. Private label posts an increasingly large threat to branded organic lines.
“Economic struggles will undoubtedly change the way organic food and drink is sold. But we don’t expect people to completely stop buying organics,” states Mogelonsky. “We anticipate more subtle changes, such as the formerly all-organic shopper who returns to traditional cookie brands while sticking with organic produce. These small changes will slow market growth.”
A&F names new cfo
NEW ALBANY, Ohio Abercrombie & Fitch Co. announced that Jonathan Ramsden has been named evp and cfo, effective upon his joining Abercrombie & Fitch in early to mid-December.
For the past 10 years, Ramsden has served as the cfo and a member of the executive team of TBWA Worldwide, a large advertising agency network with more than 11,000 employees worldwide and a division of Omnicom Group.
“Jonathan came to us by way of a nationwide executive search for a new cfo. We were extremely impressed by several of the candidates, but Jonathan clearly stood out above the rest,” said Mike Jeffries, ceo and chairman of the board of Abercrombie & Fitch.