DEBT FINANCING. August sales of McDonald's Miss; Japan drags

New York/CHICAGO (Reuters)-McDonald's Corp. (MCD.N) reported an increase of less than expected in August worldwide sales in restaurants established on a sharp fall in Japan and a lull in releases of new products in the United States.
The world's largest hamburger chain, whose shares fell 4.4 percent on Friday, said that sales at restaurants open at least 13 months rose 3.5% globally. Analysts polled by Thomson Reuters sought an increase of 4.3%.
Sales of the same restaurant rose 3.9% in the United States, the analysts ' expectation of 4.0%. In Europe-the biggest market of McDonald 's-the company missing an increase of 2.7%, analysts ' estimate of an increase of 4.7%.
To help increase sales, McDonald's was based on new products like oatmeal for breakfast and a review of drinks which included the introduction of fruit smoothies and other drinks.
In August 2010, demand smoothies helped drive sales of the same u.s. restaurant by 4.6%.
This year, "new product launches are really weighted toward the front half of the summer," Morningstar analyst R.J. Hottovy said.
But he noted that the company was still doing better than its competitors in terms of sales of the same restaurant.
"He is still positive comping while a lot of its competitors are still square in negative territory," said Hottovy.
Sales and profits by months of McDonald's were the envy of the global fast-food industry, which means that the company is punished when meet or Miss expectations of results.
The company has been outpacing rivals such as Wendy Co (WEN.N), Burger King Corp. BKCBK.UL and Yum Brands Inc. (YUM.N) KFC, attracting a broader range of Diners than typical young adult males fast-food.
WEAK JAPAN WEIGHS
McDonald's reported a decline of 0.3% in Asia/Pacific, Middle East and Africa, while Wall Street had forecast an increase of 3.5 percent.
Asia was dragged down by a sharp decline in comparable sales in Japan, where consumers are still adjusting to the aftermath of the March earthquake and tsunami.
Janna Sampson, investment Director, said that sein Oakbrook investments the weak results in Japan were worrying, given how many months have passed since the earthquake and tsunami struck in March.
Sampson said that "I would have thought that has already been priced in expectations,". "But one month does not make for a pattern of ... If we continue in September, it becomes more problematic. "
Earlier this week, Red Lobster and Olive Garden father Darden Restaurants Inc (DRI.N) warned that the hurricane Irene had dented its quarterly earnings by 2 cents per share.
But Irene had minimal impact on sales of McDonald 's, said a spokesman for the company.
Actions based in Oak Brook, Illinois McDonald fell 4.4 percent to $ 84.71 in trade in the New York Stock Exchange.
(Additional reporting Lisa Baertlein in Los Angeles; Edited by Lisa Von Ahn, Dave Zimmerman)

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