Skip to comments.McDonald's January sales drop more than anticipated
Posted on 02/08/2013 6:51:04 AM PST by traumer
(Reuters) - McDonald's Corp (MCD) said on Friday that January sales at established restaurants around the world fell 1.9 percent, a steeper decline than expected as fast-food chains fight for diners. McDonald's warned last month that same-restaurant sales would be down. Analysts polled by Consensus Metrix had expected a decline of 1.1 percent.
Shares of McDonald's, which had fallen earlier in the week, slipped 3 cents to $94.60 in premarket trading.
McDonald's expected sales and profit growth to be under pressure in the near term, as diners spend cautiously due to lackluster economic growth in most major markets. At the same time, the leading fast food chain is comparing against strong results from a year ago, including a 6.7 percent gain in same-restaurant sales in January 2012.
February comparable sales will be hit by about 3 percentage points because the 2012 period included an extra day due to the leap year, McDonald's said. In February 2012, the sales rose 7.5 percent. Comparable sales in Europe, McDonald's top market, declined 2.1 percent last month, with weakness in Germany and France. Analysts expected an increase of almost 0.1 percent.
The United States, a close No. 2, posted a 0.9 percent gain, helped in part by the addition of the Grilled Onion Cheddar burger to its Dollar Menu. U.S. results exceeded analysts' target for a 0.3 percent decline.
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Part of the reason for this is that McDonalds, at least around me, has really gone down hill. The bathrooms are dirty, the trash cans are always full, the area where you get condiments is dirty, and the food is just not good anymore. The only time I go anymore is if someone else wants to go and then I usually regret it.
Stats, figures, research and logic.
The left’s response?
It is still Bush’s fault...
Less income =less eating out! Thanks bammy and all you rats!
Sales are UP in the US exceeding targets.
I don’t know what ingredient causes it, but I get sick to my stomach every time I eat their burgers.
“Part of the reason for this is that McDonalds, at least around me, has really gone down hill.”
I agree. I only go to McD’s when I’m on the road. If I use the bathroom, I buy a drink. My impression is the cleanliness is slipping.
Lousy food, surly employees. What could go wrong?
When the number of people who are unemployed and ineligible for unemployment rises to the point it is at now, the amount of discretionary income to buy fast food declines.
Now, the ones who should really worry are those who are hanging on with jobs like those at MacD with 28 hours a week and no benefits. When the completely ignored unemployed reaches the critical point, places like MacD won’t need them for their 28 hours and they will join the ranks of the screwed.
Der Fuehrer and his fascist minions will have cut the last strand of the last safety net and all including those of you who think that you are “safe”, self-employed or whatever will find that your customer base has dried up or you have been regulated out of business. There will be no winners here except for our new socialist elite leaders.
A 1776 moment is creeping up on all of us.
FUBO & FAD
-They keep caving into Moochelle by removing salt and fat from their foods, giving us less of a reason to go there.
-They are now practically prohibited from marketing to children, a major factor in their 1970’s success.
-Their current marketing campaign would lead one to believe they are only interested in serving minorities.
-If you did not know better the décor on the new stores would have you thinking McDonalds was some type of a farmers market that also sold high-end coffees.
-A lot of the ones in urban locations have degraded into open storefront drug markets (with employees often taking part).
Chinese authorities cleared McDonald’s and KFC owner Yum Brands Inc (YUM) of charges they had served chicken laced with excessive chemicals....
Two words McRib or is that one word ?
Interesting. This goes to prove the point I have been making for years. Like a voice in the wilderness I have been calling on McDonald’s to bring back the Cheddar Melt. The Grilled Onion burger is a close proximation and therefore strong lends support for my argument.
Actually their breakfast sausage and egg biscuit is pretty darn good. That, and their hash browns.
Roger that! I believe they must cook everything in castor oil.
Agree on all counts.
Still, I used to go through the drive thru every morning for coffee. About three months ago, the coffee changed. I tried several stores, but the coffee is now bitter. My wife even called corporate, but they deny that they have changed their coffee.
That's the end of a 4 year habit.
McDonald's will suffer from that.
What you’re seeing is the same thing as the “half gallon” of ice cream now being 48 oz in the grocery store.
Inflation is kicking our tails, but it’s being hidden by lowering quality and quantity.
Sales INCREASED IN THE US by 0.9% when they anticipated a minus .3 decline. So your theory doesn't appear to work in the US.
It’s been years since I’ve patronized any fast food establishment. I went to a Subway two years ago, I think, because it was a convenient place to wait for a friend.
I can make better hamburgers, fajitas or burritos at home, and no one will hawk a loogie into my food because of my skin color.
U.S. retail sales rose .3% in November, aided by car sales which is normal for end of year model sales. This offset a 0.3 % decline in October. Department store sales dropped 0.8 percent and general merchandise that includes Wal-Mart and Target fell 0.9 %.
For December, adjusted sales were 0.5% higher which statistically would fall within a margin of error for 0 %.
Spending for 2012 didn’t even equal 2011; unadjusted 2012 at 5.2% which is down from 7.9% overall unadjusted in 2011.
Excluding auto sales which traditionally impact end of year sales, sales rose 0.3% which was slightly above the predicted 0.2% positive forecast (not minus .3%).
It is forecast that spending is unlikely to move upward by much until hiring picks up. Right now, consumer spending which is 70+ % of the economy and the main driver. Overall, the trend is flat and new taxes will put a further strain on consumer spending power. We had the Christmas season spike (such as it was), but it is a new year with new government drains on the economic engine. Overall, I would say the theory still fits but who knows? Miracles do happen.
As a 14 year old, I worked nearly full-time at a McDonald’s. The food then was real. Real beef, real potatos, real milk products in the shakes, etc.
Today? I can’t tell you what the hell is in it, but nothing they sell, except the Coke syrup they use is 100% anything. You taste the meat and it isn’t beef - lots of fillers of something, same for the fries - processed something. Shakes? Hell I don’t know - maybe wood pulp for all I know.
Steve Martin was right:
I have a theory about McDonalds, that is, everything they make is all one thing, and in the back they have this big vat full of this stuff, these little molds combining, like SPLURT Hamburger! SPLURT Malt! SPLURT Paper box! SPLURT Heres your change!
“I dont know what ingredient causes it, but I get sick to my stomach every time I eat their burgers.”
Do you check to see if the patty has the marks where the jockey hit it?
We try to eat out just once a week, usually on Saturdays. Four of us went to Karl's Jr. and got four combos that came in around $27. Looked around and there were only two other people in the place at lunch time. Drove past the McDonalds and sure enough, every parking space was taken.
We will see how consumer sales go for the rest of the year. It is worth noting that the trade deficit has dramatically shrunk due to record oil exports.
"The gap shrank 20.7 percent to $38.5 billion, lower than any estimate in a Bloomberg survey of 73 economists and the least since January 2010, Commerce Department figures showed today in Washington. The jump in fuel sales to overseas buyers, combined with purchases of the fewest barrels of imported crude in almost 16 years, led to the smallest petroleum deficit since August 2009."
I would expect the cheap fast food places to go up in a down economy, at least until it gets so bad that people can’t even afford THAT.
Agree. Cheap and filling. Oversea, fast foods like McDonald are actually pretty expensive. I suspect that has something to do with the decline in sales in Europe.