The Recession is Over
A bold statement for sure, and one that begs the question: How do I know the recession is over? Well, I looked into my crystal ball...er, paper bag, and it is definitely over.
What, you question the validity of this statement?
Come on now, I'm an honest guy.
It says it right here, in a report by the Associated Press (AP). The recession is over.
The economy has kicked it up a notch or two and people are spending money freely, again. But what, you ask, are they spending their new-found money on?
McDonald's.
Seriously, the golden arches saw a 2.8 percent increase in May in same-store sales in the United States. International same-store sales saw a whooper...oops, sorry about that, a whopping 5.1 percent increase.
The increase in the U.S. orders was filled by the classic menu staples, such as hamburgers, cheeseburgers, Quarter Pounders, large fries, shakes, Big Mac sales, and the new McCafe espresso coffees.
The AP said that in May 2008, McDonald's saw same-store sales in the U.S. rise 4.3 percent, with the help of a new menu item, the Southern Style Chicken Sandwich, and government stimulus checks that found their way to consumers' mailboxes and bank accounts.
The fried chicken sandwich was a favorite choice for the hungry consumer, boosting company sales in the U.S. for several months. Stimulus checks, meanwhile, helped expand sales at McDonald's chains as thrifty - and hungry -- consumers treated themselves to a few meals out of the house.
(Disclaimer: I don't eat at McDonald's.)
Analyst David Morris at Mintel said discounts at McDonald's competitors may have weighed down U.S. sales. Other fast-food chains and sit-down restaurants have heavily promoted their respective discounts to bring in the fast-food eating customers.
Consumers looking to save some cash have been turning over their dollar bills more readily for fast-food for the shear comfort, to take the place of costlier meals out, or as an alternative to the good, home-cooked meal.
But although McDonald's was able to increase its sales, or perhaps because of the economy, U.S. same-store sales were not as high as some Wall Street analysts had predicted. They're hungry, too.