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Morning Market Roundup: McDonalds’ Sales Down for First Time in 9 Years, Whats Going on With Oil?

Nov. 8, 2012 9:51am Becket Adams

Here’s what’s important in the business world this morning:

McDonald’s: McDonald’s Corp. is having trouble stomaching the competition.

The world’s biggest hamburger chain said Thursday that a key sales figure fell for the first time in nearly a decade in October, as it faced intensifying competition and a challenging economy. The company, based in Oak Brook, Ill., says global revenue at restaurants open at least 13 months fell 1.8 percent for the month. The last time it dropped was in March 2003.

The figure is a key metric because it strips out the impact of newly opened and closed locations. It’s a snapshot of money spent on food at both company-owned and franchised restaurants and does not reflect corporate revenue.

McDonald’s says the figure fell 2.2 percent in both the U.S. and Europe in October. In the region encompassing Asia, the Middle East and Africa, it dropped 2.4 percent. CEO Don Thompson cited the “pervasive challenges of today’s global marketplace” for the declines.

Unemployment Benefits: The number of people seeking unemployment benefits fell last week by 8,000 to a seasonally adjusted 355,000. But officials cautioned that the figures were distorted by Superstorm Sandy.

The Labor Department said Thursday that the four-week average of applications, a less volatile measure, rose by 3,250 to 370,500.

The storm could affect weekly applications for up to four weeks, a Labor spokesman said.

Applications declined in one state last week because its unemployment office lost power during the storm and wasn’t able to receive applications. The spokesman wouldn’t identify the state. The storm also pushed up applications in other states because those temporarily out of work sought benefits.

U.S. Trade Deficit: The U.S. trade deficit declined to the lowest level in almost two years as exports rose to a record high, a gain that is not expected to last given the global economic slowdown.

The trade deficit narrowed to $41.5 billion in September, the Commerce Department said Thursday. That is 5.1 percent below the August deficit and the smallest imbalance since December 2010.

Exports climbed 3.1 percent to an all-time high of $187 billion, reflecting stronger sales of commercial aircraft, heavy machinery and farm goods. Imports were also up, rising 1.5 percent to $228.5 billion, reflecting a jump in shipments of consumer goods from cell phones to clothing and toys.

So far this year, the U.S. deficit is running at an annual rate of $554 billion, slightly below last year’s $559.9 billion imbalance, which had been 13.2 percent higher than 2010.

Oil: The price of oil rose above $85 a barrel Thursday, recovering only a fraction of the previous day’s losses, which were the biggest of the year.

By early afternoon in Europe, benchmark crude for December delivery was up 86 cents to $85.30 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell $4.27, or 5 percent, to finish at $84.44 per barrel in New York. It was the lowest price since July 10.

In London, Brent crude was up 76 cents to $107.58 a barrel on the ICE Futures exchange.

The Associated Press contributed to this report.

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Comments (38)

Hickory
Posted on November 8, 2012 at 4:59pm
Mickey D. has been having a lot of problems keeping costs down in inner city locations. The logistics cost of supplies has gone through the roof. Refrigerated trucks are now hauling Mickey D. stuff at half capacity but charging for a full load. Trucking companies contract for a set price for a haul………… full or partial load. One major reason is that close by distribution warehouses have shut down. Mickey D. was just a small part of their business and now, supplies have to be hauled from longer distances. Mickey D. has layed off a lot of their local drivers that picked up at what used to be local distribution centers. The EBT babes will have to soon eat that free Obama phone because there will be no Mickey D. close by to get a big mac with a double order of fries.

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- ru12
  Posted on November 8, 2012 at 7:51pm
  Out here in California our EBT cardholders don’t have to eat at McDonald’s as they can afford a much nicer dining experience at one of the nearby CASINOS! Sorry MickeyD…
  
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EqualJustice
Posted on November 8, 2012 at 2:21pm
Obama sure did inherit a huge mess from HIS OWN POLICIES. Romney should be glad he doesn’t have to clean up BO’s mess now. NO ONE will be able to do that after 4 more years. Sad for the children.

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ResistSocialism
Posted on November 8, 2012 at 11:23am
Better keep offering the buy one get one sandwich McDonalds for the foreseeable future with a cheap price or you will see revenue drop even further.

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thegreatcarnac
Posted on November 8, 2012 at 11:23am
Latisha and tyrome got more money on their EBT cards and also McDonalds in the hood started hiring cops for security…..they can buy steak and avoid arrest by sitting home. All of these changes are slowing McDonald’s businesses.

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goodgrubguy
Posted on November 8, 2012 at 11:19am
I think it’s because other higher quality concepts have lowered prices and now the customers are making a value call in favor of better food. McD’s is more of a resl estate company than a restaurant company…

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hauschild
Posted on November 8, 2012 at 10:50am
With all the additional “pocket money” that food stamps essentially bring, who needs to eat at Mickey-D’s any longer???

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horsefeathers99
Posted on November 8, 2012 at 10:42am
Businesses don’t have the incentive now to go ahead in hiring and expanding.

At least with Bush and his faults, the unemployment was around 5% to 6% until the Democrats took over the House and Senate in the last two years and he caved to them.

Who is Obama going to blame for the bad ecomomy this time?

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- hauschild
  Posted on November 8, 2012 at 10:54am
  I don’t believe his intentions are to blame anybody. His main intention is to destroy what we, as Americans, understand as our economy. He and his ilk need a high percentage of people in need at all times, or they become irrelevant and soon out of a job.
  
  I am often frustrated when people tend to give this shyster credit for actually caring by blaming somebody else. Hell, this is what he has built his entire sham of a life on – lowering America’s standard of living across the board with the idiotic hopes of “maybe” improving the lives of those abroad. I can’t think of a more perverted or twisted ideology than that.
  
  Report this comment
- AbrahamsSheepdog
  Posted on November 8, 2012 at 11:11am
  He Nailed it. Bullseye
  
  Report this comment
- Max jones
  Posted on November 8, 2012 at 12:07pm
  the administration and a few others have been keeping a secret…..A big secret. Like Capitalist Oil companies, finding 500 billion bbls of crude in Texas and N.Dakota, accessible cheaply by frakking and horizontal drilling. That is more oil than Saudi Arabia and Iran ,together have ever had! Quite a secret,Huh? This will be where he will screw his first liberal group…..He will “drill, baby, drill” I guarantee it.
  
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jrcess
Posted on November 8, 2012 at 10:24am
Company after company will pull back in revenues, Welcome Obummer. With no tax dollars it will be interesting to see how the super Kaffer will make anything work. Not to mention 10′s of 1,000′s in lay offs of jobs.

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- Max jones
  Posted on November 8, 2012 at 12:39pm
  obama’s agenda is to have control of ALL commerce, and every dollar. The destruction of the economy is just one step in that direction…he talks about infrastructure a lot, and that is a big concern for him. as long as the infrastructure is fairly sound he can work his plan to regulate and direct our national livelihood. He thinks he can rebuild the system in his own image, and with the help of Globalist wealth, he will get pretty far along in that quest. There is a lot more going on than we know…back room deals and payoffs to the very people he tells us are enemies, and knives in the backs of those he publicly calls friends.
  
  Report this comment
Ilikepeople
Posted on November 8, 2012 at 10:24am
It’s hard to say, but I know gold isn’t money, souls are.

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- progressiveslayer
  Posted on November 8, 2012 at 10:36am
  LSD does horrible damage
  
  Report this comment
- Ilikepeople
  Posted on November 8, 2012 at 10:40am
  progressiveslayer,
  So does nonstop printing and debt ceiling raises. What does that mean for your soul?
  
  Report this comment
- Ilikepeople
  Posted on November 8, 2012 at 10:43am
  progressiveslayer,
  The money has to come from somewhere pal, it will be sucked from your soul.
  
  Report this comment
- Max jones
  Posted on November 8, 2012 at 11:59am
  PROGSLAYER…..The great cheeseball has it all down to margin of two or three…and changing that ration should everybody’s attention be…because Of all the people, I have the wisdom to know who is and who just makes stuff up. you, all of you don’t have my soul and you can cry about that but your money won’t buy you not another bag.
  
  Report this comment
nojoke
Posted on November 8, 2012 at 10:24am
I remember when McD’s had dropped last time and wonderd what was coming and then the economy fell apart. I will be watching the tea leaves and see if this happens with other fast food stores and watch energy areas as well.

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Steve28
Posted on November 8, 2012 at 10:14am
Well, with Obama there will be no new coal plants and many shut down and I suspect that exploration on Federal Land will be off the table. Also, no big increases in drilling off shore. On top of that I expect more attacks by the left on fracking which will increase the price and could hurt product. So where’s the supply going to come from? Yep, the same with maybe some supply from SA shortly. Sad thing is we had a chance to become self sufficient and now Obama will waste more money on alternative fuels and keep raising the price of oil until the alternatives make financial sense. The morons will at least suffer with the rest of us and complain the loudest, but blame anyone but Obama.

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- Walkabout
  Posted on November 8, 2012 at 10:23am
  Well said. It covered the liberal energy policy & response to its’ consequences.
  
  I went to DEBKA. I looked at how Obama will deal with Iran’s nuclear bomb program. In short he won’t. He’ll be like a deer in the headlights. He is hapless. To prevent the criticism over his failure, he say “Look over there, a plane!”. that is he go onto promote some other U.N. treaty etc.
  
  The elections are over. The new elections have began. We need to read, analyze & politic at then individual level. We cannot stand these liberals to reduce us to poverty& insecurity.
  
  Report this comment
- Max jones
  Posted on November 8, 2012 at 12:50pm
  Look the election is over, and now the “prince” can get down to the the important work of Globalization and congealing the currencies of all nations. His rise to power is a construct of supernatural forces intent on a Global theocracy, and super concentrated centralized power. The United States is of primary concern, because we have traditions of liberty and independence, as well as being the greatest and last stronghold of Christian faith in the world…plus we hold 3-4 hundred million fire
  
  Report this comment
- Max jones
  Posted on November 8, 2012 at 1:38pm
  Firearms…
  
  Report this comment
MrKnowItAll
Posted on November 8, 2012 at 10:05am
And you Thought Mad Max was just a Movie!

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- 1RealAmerican
  Posted on November 8, 2012 at 10:13am
  You just had to say it, didn’t you? Sad part of it is it was what I was already thinking……..
  
  Just sayin…….
  
  Report this comment
- Max jones
  Posted on November 8, 2012 at 1:43pm
  We’ll see if the socialist can keep the MAD BLAX from coming into the suburbs to invade and pillage…..They are going to think they can get away with anything, after all… they ‘OWN’ the system.
  
  Report this comment
Sy Kosys
Posted on November 8, 2012 at 10:01am
But i thought if R/R were elected that the dollar menu was gonna be banned

http://twitchy.com/2012/10/20/cuckoo-rumor-of-the-day-romney-will-ban-****-weaves-and-the-dollar-menu/

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Snowleopard {gallery of cat folks}
Posted on November 8, 2012 at 9:57am
Look for oil to flux wildly and gas prices at home to go nuts, especially as Obama has announced he will pursue (probably by regulation and executive order) a $20/ton carbon tax. Taxmageddon of Obama has arrived in force.

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- progressiveslayer
  Posted on November 8, 2012 at 10:20am
  The Marxist mulatto will finish off the coal industry and our energy cost will skyrocket,he’ll continue to waste billions on BS green energy and he’ll regulate US oil companies out of business.
  
  Report this comment
- Max jones
  Posted on November 8, 2012 at 12:28pm
  Things will actually begin to look better….Obama has some tricks up his sleeve and will use international influence to lull the anxious part of the population back to relative ease. Like all he does, it is part of a grander theme of Global tyranny that includes the suppression of firearms, Christianity, common decency and morality. He really does have his eye on the plausibility of a global government with himself as the the grand Poobah………our victimization is collateral damage, and of little importance to his quest for power. he’s got a lot of support, internationally. and supernaturally driven cast of characters to assist his ascension.
  
  Report this comment
ares338
Posted on November 8, 2012 at 9:56am
What’s going on with oil??? Seriously…you have to ask that? As long as the Camel Jocks have the monopoly on oil we will be fornicated! That’s what is going on.

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- Exrepublisheep
  Posted on November 8, 2012 at 10:10am
  We have some of the worlds largest supplies of natural gas right here in the U.S.A. Why don’t we use it? Because the Exxon/Mobile types won’t allow it.
  
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- Ilikepeople
  Posted on November 8, 2012 at 10:18am
  Well, Internationally oil is purchased with U.S dollars between nations, and so if the U.S becomes a big supplier of Natural gas I wonder if they will want to trade Natural Gas in U.S dollars? These things I wonder.
  
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- progressiveslayer
  Posted on November 8, 2012 at 10:24am
  EX You’ve said some pretty stupid but that takes the cake. No idiot, the government won’t allow us to use natural gas because it’s cheap and the Marxist mulatto can’t have us using cheap energy.Something about revenge I heard some skinny Marxist POS spewing the other day.
  
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- Walkabout
  Posted on November 8, 2012 at 10:35am
  Exrepublisheep
  
  You are no Republican, Conservative (fiscal or social) or libertarian. It must be pure pain for you to come here.
  
  What would be the point? To reason with people, here & try to convert them. To engage in opposition research? To for sh/ts & giggles to laugh at us?
  
  As I have said before the posters are the tip of the iceberg when it comes to the people coming to a website. Check the web traffic if you don’t believe me. Some maybe most readers do not even read the posts. So what do you hope to gain?
  
  I come here to become informed to sharpen my arguments & maybe to change my POV. When I see other people make good arguments, I copy them. Comments like yours are like dross are min tailings. It is just something that has to be got through to get to the good stuff.
  
  Report this comment
- Max jones
  Posted on November 8, 2012 at 1:51pm
  There has been recently a new development in the energy equation…take a couple of minutes and read about it….give me some feedback.http://pro.stansberryresearch.com/1210THIRDLIA/WPSINB12/
  
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- Max jones
  Posted on November 8, 2012 at 1:57pm
  Actually, now that Obama has a ‘mandate’ to proceed, he will force deals on the corporations and jumpstart his agenda. There will be money….blue states get the gravy, red states get the shaft.
  He is very vindictive. The unions will be the pivot point.
  
  Report this comment
- Exrepublisheep
  Posted on November 8, 2012 at 6:43pm
  WALKABOUT. You’re right about my politics. I come here to hear arguments that are counter to mine in case I’m wrong. Plus, every now and then ignorance makes me laugh. Progressiveslayer for instance.
  
  Report this comment

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