The Low Post News

U.S. Sales at McDonald’s Slip During May

McDonald’s announced that a key sales metric had dropped again in its stores in the U.S. as it was facing ongoing challenges that were broad based during May.

The largest hamburger chain in the world said its sales in the U.S. were down by 1% in locations that were opened a minimum of 14 months.

The chain has struggled of late to increase its sales amidst more competition and changing habits with regard to eating. Many of McDonald’s core customers have also been struggling financially, forcing the chain to put more importance on value.

McDonald’s executives have admitted that the chain added too many new items in too quick of a time last year, which in turn led to inaccurate orders and slower service.

Don Thompson the CEO said the company was working with its franchisees to address the problems, by ensuring that the restaurants have the appropriate staff.

The drop in sales in the U.S. comes after a drop of 1.7% for the first quarter of 2014. Last year sales at McDonald’s location in the U.S. that were established fell by 0.2%.

Overseas, a boost in China following the worries last year over avian flu helped sales to increase by 2.5% in its Middle East, Africa and Asia division. The results were an increase in May of 0.9% globally.

McDonalds’s biggest market, Europe saw its sales increase by 0.4% helped by improvement in France and the UK. An expanded business in beverages was in part the factor for the improvements in Europe.

The Oak Brook, Illinois based McDonald’s Corp has over 35,000 locations worldwide. It shares of stock fell by 19 cents on Monday in premarket trading to $101.76. However, thus far in 2014 shares of the stock are up over 5%.

McDonald’s is facing stepped up competition in the breakfast segment with Taco Bell offering a complete breakfast menu and Burger King announcing they are offering hamburgers during the typical breakfast hours.

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