McDonald's January sales soar on Dollar Menu

McDonald's Corp., the world's largest restaurant company, said global sales rose 7.1 percent in January, topping analysts' estimates, as consumers sought less expensive food.

Sales at U.S. restaurants open at least 13 months climbed 5.4 percent, while European orders jumped 7.1 percent, Oak Brook-based McDonald's said today in a statement. Sales in Asia, the Middle East and Africa gained 10 percent.

With a dollar menu and coffee that's cheaper than Starbucks Corp.'s, McDonald's is lifting U.S. sales, where joblessness hit a 16-year high in January. The U.K., France and Russia are driving European sales, while Asia's growth was lifted by Chinese New Year promotions and chicken and beef choices that cater to local tastes.

"McDonald's broad-based global sales momentum continues partly due to the recession-resistant nature of brand McDonald's," Paul Westra, an analyst with Cowen & Co. in New York, wrote in a Jan. 26 note.

Revenue across all of the company's stores climbed 2.6 percent, or 9.1 percent excluding currency translation. The U.S. dollar gained 9 percent against the euro, 22 percent against the Russian ruble and 10 percent on the Australian dollar last month, according to Bloomberg data.

Analysts estimated that global comparable-store sales would rise 4.1 percent, based on the average of projections from Wachovia Capital Markets, Morgan Stanley and Barclays Capital. U.S. sales were expected to climb 4.3 percent, while European sales growth was estimated at 5 percent.

McDonald's rose 89 cents to $59.35 at 8:27 a.m. New York time in early trading. The shares climbed 10 cents to $58.46 Feb. 6 on the New York Stock Exchange and have slipped 6 percent this year.