McDonald's Latest Sales Are Worse Than Expected

Forbes ^ | 9 March 15 | Staff

[SkyPilot]

McDonald's MCD +0.6% worldwide sales fell a more than expected 1.7% in February, marking nine consecutive months of declines.

This comes a week after new CEO Steve Easterbrook assumed the top job. Easterbrook, who has said he considers himself an ‘internal activist,’ is faced with reviving the lagging sales that cost previous CEO Don Thompson his job.

U.S. sales fell 4%, as the fast food giant continues to face heavy competition from fast casual chains like Chipotle and Panera.

“Consumer needs and preferences have changed,” said the company in a statement. “McDonald’s current performance reflects the urgent need to evolve with today’s consumers, reset strategic priorities and restore business momentum.”

Last week, McDonald’s announced it would start to phase out the use of chickens that are raised with human antibiotics.

Sales in Asia, where the company is still being punished by customers following a food safety scandal last year, declined by 4.4%. “Rebuilding brand trust by strengthening McDonald’s quality and value perceptions is one of APMEA’s top priorities for 2015,” the company said.

Total sales were partially offset by a 0.7% gain in Europe sales, where the company saw strength in the U.K. and Germany but still faces headwinds in Russia.

The 1.7% worldwide sales decline reported by McDonald’s was much worse than estimates of a 0.3% decline, according to analysts polled by research firm Consensus Metrix, and is telling of how much work the company has left to do under Easterbrook. Last month the company reported a 1.8% decline.

Shares of McDonald’s declined 1% to $96.14 in premarket trading and are up 5% over the last 12 months.

[SkyPilot]

I guess we're not "Lovin it!"

Good grief. What was this "Payin Wit Lovin!" promotion they just had?

Having customers perform "tricks" to get "free" food?

I have not gone to a McDonalds in years. Not only is the food and service horrible, but the company has been "ghettoized."

From promotions and advertising to the crowds of loiterers they attract, to the wonderful "advertising" of employees and patrons getting violent with "beat downs", I avoid the place like the plague.

The media won't tell you that though. They will blame it on "America's changing palate."

Yeah, right.

[Tijeras_Slim]

McDonald's Latest Sales Are Worse Than Expected

But their food isn't.

[MeganC]

Well played! (-:

[PJ-Comix]

One problem is their fries don’t taste like they used to. Also they should ditch their breakfast oatmeal because it is absolutely horrible.

[FatherofFive]

McDonalds does not sell what I would consider food.

[SWAMPSNIPER]

People are afraid someone will spit in their food.

[Extremely Extreme Extremist]

Bring back the beef-tallow and cottonseed oil cooked fries.
Bring back the Styrofoam containers.
Bring back the heat lamps.
Bring back "You deserve a break today" and start appealing to suburbanites again.

[Georgia Girl 2]

I thought Mickey Dees’ owned Chipoltes’.

[Perdogg]

Their big breakfast is good.

[manc]

Not been on there for years and have no desire to do so either.

[Mercat]

I love the oatmeal!!!

[manc]

Agree. lie hell would I go there and eat that crap with people working there who don’t give a damn and much of their cliental are trash.

[OneWingedShark]

“Consumer needs and preferences have changed,”

wouldn't have anything to do with the REAL unemployment numbers, would it?

[Tijeras_Slim]

I think they sold it. We have one in Albuquerque, and it’s always jammed. I can’t imagine how it could survive with all the great New Mexican multi-generational hole in the wall restaurants here.

[LostInBayport]

I think the "realism" imposed upon the mascots may have hurt sales.

[Mercat]

I knew I was in the deal south today is Alabama when the only ice tea available was sweet tea.

[freedumb2003]

I am here in downtown Chicago and there are more MacDonald’s than Starbucks! I mean like one on every other corner!

Also Walgreen’s are almost as populous.

Next to the Chase Bldg, there is a freaking MacDonald’s ATTACHED to a Chinese Noodle place!

MacDimSum?

[Extremely Extreme Extremist]

One problem is their fries don’t taste like they used to.

It was cooked in a mixture of 95% beef tallow and about 5% cottonseed oil. Our high school cooked their fries the same way. They were actually better than the burgers themselves.

What's ironic is that beef tallow is healthier than vegetable oil, or whatever the Hell oil they're using now. Vegetable oil is completely unnatural to the body and goes through a chemical process. Yet they caved to the food Nazis and the vegans, and now they're suffering the consequences of what happens when you pander to the Left.

[P.O.E.]

So the “I’m Lovin’ It” campaign attracted exactly the demographic they were going for, it seems.

[Jane Long]

People are afraid someone will spit in their food.

Bingo!

(or, worse!)

Haven’t been to a McD’s in years, and have NO intention of EVER returning.