McDonald's sales surge in sluggish economy

"I'm lovin' it."

McDonald's shareholders can hardly quibble with the company's advertising slogan these days as the fast-food giant logs impressive results despite the soft economy.

Its most recent monthly sales jumped 8 percent, and McDonald's stock has held up better than average amid the Wall Street carnage - points that Ralph Alvarez, president and chief operating officer of McDonald's Corp., may cover in two Valley talks today.

"We're recession-resistant, although not recession-proof," he said in a phone interview. "We've been doing well."

Alvarez speaks this morning at Marriott's Camelback Inn to help fund college scholarships linked to Ronald McDonald House Charities. He follows that with a lunch talk to the Hispanic Business Students Association at Arizona State University, where he'll touch on the importance of running a conservative operation amid the credit crunch.

"As a company, you have to make sure you have a strong balance sheet and excess liquidity," he said. "You have to run the business for the long term."

Alvarez calls McDonald's a network of small businesses, with 80 percent of its restaurants operated by franchisees.

The company benefits from its ability to provide food at competitive prices and careful oversight of its supply chain to battle rising commodity prices. A third advantage relates to the firm's wide store network.

"We're within 2 miles of 90 percent of our customer base," he said.

Alvarez said it's important for the company to stress philanthropic activities, such as scholarship drives.

"The great equalizer is education," he added.