Meat and Poultry Industry News

McDonald’s monthly sales drop for first time in 9 years

McDonald's Corporation announced that global comparable sales decreased 1.8% in October.  Performance by segment was as follows: U.S. down 2.2%; Europe down 2.2%, and Asia/Pacific, Middle East and Africa down 2.4%.

This month marks the first time since 2003 that McDonald’s has seen a drop in sales, reports the Los Angeles Times. Throughout the U.S. recession and recovery, the chain had thrived with expanded offerings, limited-time deals like the McRib sandwich and its Dollar Menu.

"But the momentum isn't there anymore," said analyst Nick Setyan at Wedbush Securities. "In a category that isn't growing very much, they can't keep developing at the same pace they have been."

"The McDonald's System remains focused on serving the evolving needs of our more than 69 million customers daily," said McDonald's President and CEO Don Thompson.  "Though October's sales results reflect the pervasive challenges of today's global marketplace, I am confident that our strategies and the adjustments we are making in response to the current business headwinds will build sales momentum and drive sustained, profitable growth."

In October, U.S. comparable sales decreased 2.2%.  Modest consumer demand and heightened competitive activity offset the impact of local Dollar Menu advertising, the Monopoly promotion, and the recent launch of the Cheddar Bacon Onion premium sandwiches.  Moving forward, the U.S. remains focused on enhancing its value leadership position by balancing strong everyday value messaging with affordable premium menu options.

In Europe, comparable sales declined 2.2% as positive results in the U.K. were offset by declines across many markets.  Amid the segment's ongoing economic uncertainty, Europe is reinvigorating its value offerings through increased advertising and new meal combinations at various price tiers, featuring core and premium menu items, and enhancing the restaurant experience to attract more customers.

In Asia/Pacific, Middle East and Africa (APMEA), October's comparable sales declined 2.4% with negative results in Japan, Australia and other markets, including China.  Looking ahead, APMEA seeks to further differentiate the McDonald's experience through unique daypart value platforms, locally-relevant menu choices and unmatched customer conveniences.

Source: McDonald’s Corp.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Podcasts

Brenneman analyzes Butterball’s new animal care, well-being program

Rod Brenneman, CEO of Butterball, discusses his company's new Animal Care and Well-Being Program, his company's certification by the American Humane Association and further animal-handling initiatives, all officially announced in September 2013.

More Podcasts

National Provisioner

.

February 2015

The February 2015 issue of NP features cover story: Power Surge, a look at J Bar B Foods.

Table Of Contents Subscribe

Independent Processor

.

February 2015

The February issue of IP features cover story: The great speckled bird. 

Table Of Contents Subscribe

Provisioner Store

NP-SB-2014Cover.jpg
The National Provisioner Source Book

The Sourcebook is an exclusive buyer’s guide and reference tool for product and supplier information in the meat, poultry and seafood marketplace.

More Products

Sourcebook

A complete reference guide to supplies. Go to NP's Sourcebook now to check out the latest and greatest in the meat and poultry processing business.

STAY CONNECTED

Facebook icon Twitter icon  YouTube iconLinkedIn icon google +

eNewsletters

Provisioner Prime is a twice weekly electronic newsletter created by the editors of The National Provisioner. Provisioner Prime appears in your inbox every Tuesday and Thursday with a recap of the week's top news and trends. Provisioner Prime also offers you exclusive access to industry analysis, blogs, events, podcasts, videos, webinars and The National Provisioner feature articles. 

Sign up for Provisioner Prime HERE.