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Retail Recession: McDonald's is Lovin' It

When the economy got tough, cash-strapped consumers went to McDonald's in Q1. Recession is no McProblem for the fast food giant. (More Q1 McResults below.)
Retail Recession: McDonald's is Lovin' It
Photo courtesy of McDonald's
One of the few retail companies that was consistently on the positive side of the same store sales reports in the first quarter of 2009 was McDonald's. This was no surprise to anyone who was paying attention to the spending habits of cash-strapped consumers who were cutting back and trading down. There will be no slowdown or downsizing for the global fast food this year, with 1,000 store openings planned around the world.

McDonald's has found itself on both sides of legal actions in the past three months. A couple in Arkansas has filed a multi-million dollar lawsuit, accusing McDonald's employees of posting nude photos found on a cellphone the couple left behind in a Fayetteville restaurant. In Pennsylvania, another woman spilled another cup of McCoffee and filed another lawsuit, alleging that the burns suffered by her 11-year old passenger were the fault of a loose lid, not her own clumsiness.

On the flip side of legal issues, McDonald's filed suit against the "McDragan's Drive In" strip club in Sweden for trademark infringement. Apparently the combination of the strip club's McName and the use of a double-breasted logo is too confusingly similar for McDonald's and its iconic golden arches. So far, it seems the strip club's owner has found the value of the publicity has outweighed the cost of defending itself against the busy McDonald's legal team.

Besides its legal issues, McDonald's also got pressure in Q1 to be a more responsible food vendor. Shareholders have been nagging the company to reduce the amount of pesticides in its potatoes, and the humane society announced its intentions to pressure the company into using cage-free eggs, which the company is already using in its UK restaurants.

In the first quarter of 2009, the big burger business was both a big winner and a big target.

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