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UPDATE 2-McDonald's October same-store sales up, U.S. slips

Mon Nov 9, 2009 8:54am EST

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* U.S. same-store sales fell 0.1 percent

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* Worldwide comparable sales rose 3.3 percent

* Europe same-store sales jumped 6.4 percent

* Shares up 0.8 percent to $62.20 in premarket trade (Adds past performance, details, updates stock activity)

CHICAGO, Nov 9 (Reuters) - McDonald's Corp (MCD.N) said sales at U.S. restaurants open at least 13 months fell 0.1 percent in October, as the company's Dollar Menu items, McCafe coffee drinks and new Angus burgers were not enough to drive cash-strapped diners to spend more.

The small dip marked the first time McDonald's same-store sales fell in its home market since March 2008, when such sales declined 0.8 percent. McDonald's said October's 0.1 percent fall outpaced results in the overall industry, which has been struggling to attract consumers dealing with rising unemployment and other financial concerns.

McDonald's had cautioned that U.S. same-store sales could be "flat to slightly negative" in October after rising 2.5 percent in the third quarter.

The world's largest hamburger chain said comparable sales rose 3.3 percent worldwide.

Shares of McDonald's rose 0.8 percent to $62.20 in premarket trading.

McDonald's has been outperforming smaller chains, such as Wendy's/Arby's Group Inc (WEN.N) and Burger King Holdings Inc (BKC.N) by offering a variety of items, including breakfast foods, for $1 each. It has also introduced pricier fare, such as a trio of Angus burgers, which sold well in the month.

Closely watched same-store sales rose 6.4 percent in Europe, helped by the United Kingdom, France and Germany.

Comparable sales rose 4.7 percent in the company's Asia Pacific, Middle East and Africa segment, driven by Japan and Australia.

Last week, Wendy's/Arby's said sales at established Wendy's restaurants in North America fell 0.1 percent in the latest quarter, pressured in part by the company getting out of the breakfast game in about 300 restaurants. Such sales fell 9 percent at Arby's existing North American locations. [ID:nBNG325293]

Burger King's system-wide same-restaurant sales fell 4.6 percent in the United States and Canada for the September quarter. (Reporting by Jessica Wohl, editing by Gerald E. McCormick, Dave Zimmerman)



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