McDonald's Sees Sales Climb Despite Economy

Even in a down economy, consumers still are able to spare money for that Big Mac or perhaps a McLatte.

McDonald's announced Monday that year-to-year same store sales rose 8.2 percent in October, according to Forbes.com.

The news helped drive McDonald's stock prices up 1.8 percent, or $1.01, to close at $56.48 Monday in New York.

The fast-food giant's success is another indication that its low-price formula, including the recession-friendly "Dollar Menu," is a winning strategy during a difficult time period, Forbes said.

While the Dow Jones industrial average has fallen 31.9 percent over the past year, McDonald's has slipped only 3.4 percent. That bests rivals Burger King, which fell 24.6 percent, and Yum! Brands, parent company of KFC, Pizza Hut and Taco Bell among other fast food restaurants, which fell 28.6 percent.

Part of McDonald's success is also tied to its coffee offerings, designed to take on Starbucks. Meanwhile, the coffee giant has seen its profit drop 97 percent in its fourth quarter amid closing stores and falling sales.

"The fast food chain is on the opposite end of the financial spectrum from most of its competitors, as most sit-down restaurants and chains have reported a decline in foot traffic and revenues," Forbes said. "Consumers are trying to save money where they can and that means pulling back on expensive nights out in exchange for cheaper grub, often called 'trading down.'"

Morningstar analyst John Owens said people are certainly trading down to more affordable options like McDonald's. "It definitely shows they are recession-resistant," he added.