• Ad Age, Sydney Morning Herald, Tuesday, January 27, 2009 10:30 AM

McDonald's credits its breakfast, chicken, value and beverage items for a 5% boost in same-store sales in the U.S. during the fourth quarter (and 4% for the year), Emily Bryson York reports in Ad Age. In reporting that sales rose 7.8% in Europe and 13.2% across its Asia-Pacific, Middle East and Africa division, Sydney Morning Herald's Frank Ahrens writes: "So much for McDonald's representing What the Rest of the World Hates About America."

McDonald's is now selling McCafe espresso-based beverages in about 7,000 U.S. locations, approximately half its total locations, and says it will have coffee bars in most restaurants by mid-year, when it will begin national broadcast advertising. McCafe advertising will come out of the chain's breakfast ad budget, says president and COO Ralph Alvarez, and other pieces of the marketing budget will not be affected. When the chain completes the McCafe rollout, it will begin adding smoothies, frappes and bottled beverages to its 14,000 U.S. restaurants.

UBS analyst David Palmer predicts that by the time other companies have reported quarterly results, McDonald's will have posted the best results in the consumer category.

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