Is this really such a bad thing?

I don’t know which is worse . . . that we are going into a recession or the fact that fast food is usually the last thing to be affected when we are going into a recession. Thank god we can always count on those overseas sales.  Thank you China.  Oy vey!

FLAT MCDONALD’S SALES – RECESSION?

ROBIN ROBERTS (ABC NEWS)

(VO) McDonald’s announced Monday that its December sales were flat. Bianna Golodryga is at one of the Golden Arches right here in Manhattan this morning. Good morning, Bianna.

BIANNA GOLODRYGA (ABC NEWS)

(OC) Good morning. Good morning, Robin. According to the latest figures, America may no longer be the fast food nation that it once was. And it has nothing to do with going on a health diet, but everything to do with going on a spending diet.

CLIP FROM MCDONALD’S AD

BIANNA GOLODRYGA (ABC NEWS)

(VO) While the jingle may say so, Americans don’t seem to be loving McDonald’s these days. The world’s largest restaurant chain reported its worst monthly result in almost five years, saying that December sales were flat. Pretty shocking, considering the fact that every day, one quarter of the US population eats fast food, gobbling up nearly $120 billion of the stuff each year. That’s over 35 million pounds of fat from Big Macs alone. So if Americans are saying goodbye to fast food, could we be saying hello to a recession?

MATTHEW BISHOP (NY BUREAU CHIEF

McDonald’s and other fast foods shares are usually the last things to be affected by a recession.

BIANNA GOLODRYGA (ABC NEWS)

(VO) McDonald’s cites cold weather, higher food costs and a slowdown in consumer spending tied to the declining housing market for slower sales. But there’s something else on the menu here, too, higher energy costs.

JOE LAVORGNA (CHIEF ECONOMIST

In the case of – of a company like McDonald’s, where a lot of teenagers frequent the establishment, high gasoline prices could be a factor.

BIANNA GOLODRYGA (ABC NEWS)

(VO) And as go the Golden Arches, so too go its rivals, from Wendy’s to Burger King, KFC and Pizza Hut. The entire fast food sector took a major hit following Monday’s announcement. Still given strong demand from McDonald’s overseas, executives say they remain upbeat. While here at home, they are counting on warmer weather and a new dollar menu to help beef up sales. And if it doesn’t work…

MATTHEW BISHOP (NY BUREAU CHIEF

We see another bad month in January. I think that means it isn’t the weather. It means it’s the economy. And we really are in trouble.

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