Morgan Stanley: McDonald's October Same-Store Sales 'Improved, But Still Challenged'

McDonald's Corporation MCD reported on Monday a global same-store sales decline of 0.5 percent in October. U.S. comps were down by 1.0 percent while European comps were lower by 0.7 percent. Asia Pacific, Middle East and Africa saw a 4.2 percent comp decline, mostly attributed to Japan and China supplier issues. John Glass of Morgan Stanley commented in a mid-day note that McDonald's same-store-sales metrics "improved" but were still "challenged." "In the U.S., same-store-sales of -1 percent suggest a marked improvement month over month from the -4.1 percent reported in September, as the gap to Quick Service Restaurant peers improved from -6.3 percent in September to -4.8 percent in October," Glass wrote. The analyst adds that McDonald's Monopoly promotion was the main contributor to the acceleration. In addition, breakfast continues to add positively to the compass despite increased competition. Glass also points out that McDonald's also lapped the Mighty Wings promo and guest counts remain negative.