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Le Big Mac? Mais oui!

Monday, 9 Dec 2013 | 3:32 PM ET
Laggard McDonald's disappoints in U.S.
Monday, 9 Dec 2013 | 11:06 AM ET
Discussing the company's problems in the U.S. and success in Europe, with Andy Barish of Jefferies and Peter Saleh of Telsey Advisory Group.

The French still love a Royale with Cheese.

The country known more for haute cuisine than for burgers and shakes continues to pave the way for McDonald's, especially as its sales sag in the United States, Jefferies senior analyst Andy Barish said Monday.

"The French business in particular has been the one that changed the tone of the overall European business, having been positive for four months in a row," Barish told CNBC's "Squawk on the Street."

(Read more: McDonald's Nov sales miss as U.S. weakness persists)

The fast-food giant reported comparable sales in November down 0.8 percent in the U.S. and 2.3 percent in Asia, the Middle East and Africa. Europe, where sales grew by 1.9 percent, was the sole positive region.

Barish told CNBC that continued growth in Europe through 2014 may not be a "foregone conclusion" and that getting German diners back into McDonald's remained a challenge.

(Read more: Salads and wraps continue to hurt McDonald's)

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"The U.K. and Russia have been solid even throughout the economic challenges in Europe," he said. "The real question is whether they can get Germany going. The German consumer does tend to really be conservative and hunker down."

The outlook stateside is bleaker, Peter Saleh of Telsey Advisory Group told CNBC. McDonald's may need to raise prices by 2 percent to 3 percent to compensate for expected wage inflation, he said.

(Read more: McFail: McDonald's out-of-touch tipping advice)

"The good new for McDonald's is they still do a lot more traffic and a lot more volume than many of their competitors," Saleh said. "The bad news is that they're struggling to get that incremental traffic. We don't see that reversing anytime soon. We don't see any breakthrough product. The economy is improving but not enough to see a real push for McDonalds."

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street"

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