The Low Post News

Sales in U.S. Chilled by Weather at McDonald’s

McDonald’s has announced that bad weather during January hurts its sales performance in the U.S., which is yet another setback for the fast food chain as it attempts to fend off its rivals and correct its menu.

The biggest hamburger chain in the world said sales dropped by 3.3% last month at established locations in the U.S. Its sales globally were up by 1.2% lifted thanks to improvements across Europe and the Africa, Asia and Middle East region.

The U.S. decline in sales is another disappointment to hit McDonald’s, which conceded that its operations in the kitchen became complicated due to the pace of the new offerings on the menu.

Don Thompson the CEO noted recently that the burger-chain had lost some relevance with its customers.

In an attempt to attract additional diners, the chain has aggressively promoted its Dollar Menu, which has new burgers that are more than one dollar.

The rollout of the new Dollar Menu & More is designed to help the profit margins at the company without upsetting customers that are price-sensitive who have become accustomed to paying only one dollar for different items.

However, rivals such as Wendy’s and Burger King have been pushing value meals as well as special offers. McDonald’s on a broader basis is attempting to adapt to the eating habits of customers that constantly shift by offering new items that are positioned as fresh or healthy, like its egg whites breakfast sandwiches and chicken wraps.

However, McDonald’s efforts to date have not paid off. According to its recent regulatory filing, customer traffic at its established restaurants declined by 1.6% last year in the United States.

During January, McDonald’s sales performance improved outside the U.S. Sales in Europe were up 2% at its locations that have been opened for a minimum of 13 months. These were helped by strong results in France and the UK.

In the region that includes Africa, Asia and the Middle East, the figure was up 5.4% boosted by a time shift in the Lunar New Year. McDonald’s also said that solid numbers in Australia and Japan helped that region.

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