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Investors' appetite for McDonald's weakens

August 8, 2012: 3:49 PM ET

Even the dollar value menu couldn't coax consumers to McDonald's in July.

Same-store sales were flat in the United States and Europe, and sales were down 1.5% throughout Asia, the Middle East and Africa.

The house that Ronald McDonald built did try but "promotional activity" couldn't offset the sluggish global economy, the company said in a statement. One bright spot was the most important meal of the day: Breakfast.

McDonald's (MCD) said consumers lined up for its Egg McMuffins and hash browns among other breakfast treats. And sales of the McCafe Frappe also helped offset some of the declines.

StockTwits users were largely sympathetic to the weak sales figures.

HowardWPenney: The economy was "sluggish" in 2008/2009 and $MCD did not have a "sales" problem

sdharmar:Ugly July SSS from $MCD. US/Europe post declines...global sales FLAT. Market was looking for +2% gain. #bigmacblues #mcdonalds

CapitalObserver: $MCD is only down 2.7% on negative US same store sales. Amazing the free pass that "safe" dividend stocks get these days

That's a good point. In an environment where investors have an extreme appetite for yield, dividend-paying stocks have been faring pretty well. In fact, McDonald's boasts of raising its dividend every year since 1976. It's current dividend pays out 70 cents a share.

McDonald's also said it will continue to work on "optimizing" its menu. The restaurant chain has already loaded up on healthy offerings like salads and kids meals that include sliced apples and low fat milk.

BryanMortenson: @HedgeyeHWP Like any other retailer, there needs to be constant new incentive to enter the store. $MCD has an innovation problem IMO.

ivanhoff: What can we say based on $MCD negative comps: 1. ppl are eating healthier; 2. ppl are trading up or 3. Taco Bell is stealing their clients
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Catherine Tymkiw
Catherine Tymkiw
News Editor CNNMoney

Catherine Tymkiw is a news editor at CNNMoney where she helps oversee breaking news coverage and futures planning. Previously, she was the investing editor. Prior to joining CNNMoney, she was the online editor at Crain's New York Business and has nearly two decades of reporting and editing experience. She tweets @ctymkiwcnn

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