McDonald’s Sales Fall for First Time in Almost a Decade
The world’s biggest hamburger chain has said that a key sales figure fell for the first time in nearly a decade in October, as it faced intensifying competition and a challenging economy.
McDonald’s said on Thursday global revenue at restaurants open for at least 13 months ago fell 1.8% for the month. The last time it dropped was in March 2003.
The figure which strips out the impact of newly opened and closed restaurants is a snapshot of money spent on food at both company-owned and franchised restaurants and does not reflect corporate revenue.
The Illinois-based firm says the figure fell 2.2% in the US and Europe in October. In Asia, the Middle East and Africa it dropped 2.4%. McDonald’s chief executive, Don Thompson, cited the “pervasive challenges of today’s global marketplace” for the declines.
After years of outperforming its rivals, McDonald’s has seen sales slow recently, with longtime rivals such as Burger King and Wendy’s working to revive their brands with improved menus and new TV ad campaigns. Taco Bell, owned by Yum Brands Inc, is also enjoying growth with the help of new menu offerings.