McDonald's released its third-quarter earnings Monday and reported a 5% increase in profits from last year, but the company anticipates a "relatively flat" outlook for October and it appears those Mighty Wings are not living up their name in sales.
McDonald's cited the Monopoly promotion and Mighty Wings as reasons for the steady sales numbers -- sales for the quarter were $7.32 billion, just shy of the $7.33 billion that analysts predicted. McDonald's also announced its plans to leverage its "recently introduced chicken, beef and beverage options to enhance sales and profitability," but its Mighty Wings sales have not been as high as expected.
"Price and flavor are working against the promotion," McDonald's CEO Don Thompson told ChicagoBusiness.com. He went on to say that the wings are "not considered to be the most competitive in this environment. "
There's also no sign that the benefits from the small third-quarter bump will trickle down to the chain's 707,850 employees. The Los Angeles Times' Alana Semuels reports that more than half of the families of fast-food workers receive some sort of government assistance. Meanwhile, Thompson received $14 million in total compensation in 2010.
After the earnings were released, the fast-food chain's stock fell 97 cents to $94.23 during midday trading Monday and closed at $94.59. It opened at $94.85.
"While we are focused on strengthening our near-term performance, the current environment continues to pressure results," Thompson said in a release. "Around the world, we remain confident in our ability to drive sustained, long-term profitable growth through our global growth priorities -- optimizing the menu, modernizing the customer experience and broadening accessibility."
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