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McDonald's January sales drop more than anticipated
yahoo ^

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.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy
KEYWORDS: bhoeconomy; fastfood; mcdonalds

1 posted on 02/08/2013 6:51:08 AM PST by traumer
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To: traumer

= UNEXPECTED


2 posted on 02/08/2013 6:52:02 AM PST by traumer
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To: traumer
Maybe if McDonald's sold food at their restaurants people would actually go there. Just a thought.
3 posted on 02/08/2013 6:56:15 AM PST by Obadiah (We must commit to remove every Senate Blue-dog Democrat from office in 2014!)
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To: traumer

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.


4 posted on 02/08/2013 6:57:48 AM PST by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: traumer

Great article.

Stats, figures, research and logic.

The left’s response?

It is still Bush’s fault...


5 posted on 02/08/2013 7:01:52 AM PST by 2banana (My common ground with terrorists - they want to die for islam and we want to kill them)
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To: traumer

Less income =less eating out! Thanks bammy and all you rats!


6 posted on 02/08/2013 7:01:52 AM PST by vpintheak (Occupy your Brain!)
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To: Obadiah
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.

Sales are UP in the US exceeding targets.

7 posted on 02/08/2013 7:06:32 AM PST by kabar
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To: traumer

I don’t know what ingredient causes it, but I get sick to my stomach every time I eat their burgers.


8 posted on 02/08/2013 7:07:52 AM PST by catbertz
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To: Opinionated Blowhard

“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.


9 posted on 02/08/2013 7:08:56 AM PST by Gen.Blather
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To: Opinionated Blowhard

Lousy food, surly employees. What could go wrong?


10 posted on 02/08/2013 7:10:01 AM PST by fatnotlazy
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To: traumer

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


11 posted on 02/08/2013 7:11:27 AM PST by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: Opinionated Blowhard

-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).


12 posted on 02/08/2013 7:14:34 AM PST by Buckeye McFrog
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To: catbertz

Chinese authorities cleared McDonald’s and KFC owner Yum Brands Inc (YUM) of charges they had served chicken laced with excessive chemicals....

YUMMY !


13 posted on 02/08/2013 7:14:34 AM PST by traumer
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To: traumer

Two words McRib or is that one word ?


14 posted on 02/08/2013 7:15:16 AM PST by UB355 (Slower traffic keep right)
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To: kabar

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.


15 posted on 02/08/2013 7:15:57 AM PST by Obadiah (We must commit to remove every Senate Blue-dog Democrat from office in 2014!)
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To: Obadiah
Maybe if McDonald's sold food at their restaurants people would actually go there. Just a thought.

Actually their breakfast sausage and egg biscuit is pretty darn good. That, and their hash browns.

16 posted on 02/08/2013 7:22:38 AM PST by Flick Lives (We're going to be just like the old Soviet Union, but with free cell phones!)
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To: catbertz

Roger that! I believe they must cook everything in castor oil.


17 posted on 02/08/2013 7:28:48 AM PST by WinMod70
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To: Opinionated Blowhard
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.

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.

18 posted on 02/08/2013 7:31:20 AM PST by Half Vast Conspiracy (Based on a letter from an 8 year old…school is now illegal…”cuz it’s yuckey and dumb".)
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To: traumer
The Government forced them to publish calorie counts.

McDonald's will suffer from that.

19 posted on 02/08/2013 7:31:38 AM PST by what's up
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To: Half Vast Conspiracy

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.


20 posted on 02/08/2013 7:36:21 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: catbertz

“Pink Slime”?!


21 posted on 02/08/2013 7:37:34 AM PST by US Navy Vet (Go Packers! Go Rockies! Go Boston Bruins! See, I'm "Diverse"!)
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To: traumer
The price of “fast food” has to be a factor too. Why spend around $8 bucks for a grease combo when for another two dollars I can have prime rib or get a good hamburger at a regular restaurant for around seven dollars? I'm not that glued to the seat of my car.
22 posted on 02/08/2013 7:49:23 AM PST by Colorado Doug (Now I know how the Indians felt to be sold out for a few beads and trinkets)
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To: RJS1950
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.

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.

23 posted on 02/08/2013 7:50:02 AM PST by kabar
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To: Buckeye McFrog
SALES WENT UP IN THE US
24 posted on 02/08/2013 7:51:35 AM PST by kabar
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To: traumer

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.


25 posted on 02/08/2013 8:07:28 AM PST by fattigermaster (If the tiger feasts, the jackal profits...when tigers sleep, the jackals rule.)
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To: kabar

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.


26 posted on 02/08/2013 8:18:38 AM PST by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: Obadiah

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.


27 posted on 02/08/2013 8:19:28 AM PST by Gaffer
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To: Gaffer

Steve Martin was right:

I have a theory about McDonald’s, 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 ‘Here’s your change!’


28 posted on 02/08/2013 8:21:09 AM PST by dfwgator
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To: catbertz

“I don’t 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?


29 posted on 02/08/2013 8:40:54 AM PST by EQAndyBuzz (I own a weapon to protect my family from those wanting to take that weapon away.)
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To: traumer
As mentioned in prior posts I think what you're seeing, especially in the cleanliness, service, etc., is that there are more people eating out at fast food and especially at places like McDonalds. If you're a family of four you can at least go in, get three items each off of the cheap menus and still get out for under $15. The two locations by my house are hammered on Saturdays and Sundays, far busier than they've ever been as long as I can remember. Not saying the food is great, but they're pretty busy.

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.

30 posted on 02/08/2013 9:07:33 AM PST by aegiscg47
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To: RJS1950
This thread is about McDonald's January global sales. Sales in the US bucked the global trend and went up, not down.

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.

Record Oil Exports Shrink Trade Deficit as U.S. Fills Energy Gap

"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."

31 posted on 02/08/2013 9:22:20 AM PST by kabar
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To: kabar

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.


32 posted on 02/08/2013 9:23:48 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: MrB

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.


33 posted on 02/08/2013 10:45:58 AM PST by kabar
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To: kabar
The Dollar Menu was a major coup. You can tell because other chains are imitating it. Plus I order off it all the time.
34 posted on 02/08/2013 4:09:43 PM PST by hinckley buzzard
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