Supersized Sales

As the recession deepens, McDonald's is proving to be a modern-day version of the bread line.

The company's Dollar Menu is drawing in more customers every month. In November, global sales rose 7.7 percent, and same-store sales in the United States were up 4.5 percent, even as the restaurant business is suffering one of its worst-ever downturns.

As the Dow has plummeted by 35 percent this year, McDonald's shares have risen 6.5 percent as of Friday. That's bested only by Wal-Mart, another company that is thriving thanks to the downturn.

McDonald's recent introduction of new coffee drinks has also helped. Bloomberg News offers a nice little microcosm of the state of the consumer economy: "A Starbucks Corp. outlet in Greensboro, North Carolina, charges $1.75 for a 16-ounce cup of Pike Place Roast. A nearby McDonald's sells a similar size of coffee for $1.29."

November would have been even better for McDonald's if not for the burgeoning dollar. Because of currency discrepancies, total systemwide sales were up just 1.9 percent worldwide—and down 7.2 percent in Europe.