Posted on 03/09/2015 4:13:51 PM PDT by 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.
(Excerpt) Read more at forbes.com ...
Yeaahhh that's why people don't go to mcdonalds. Idiots
There was a commercial in the 70s (?) with black people on a bus. One man in a suit sings “I got a taste for beefsteak but my wallet’s kinda light.”
The driver sings a response about affordable beefsteak “with a flavor that’s out of sight.”
They always had commercials targeting different groups. The problem is their market strategy seeks to limit their client base too narrowly.
OMG In and out burgers that my fav also Five Guy
Advantage of living in SO CAL IN and out burgers
The fries went down the tubes years ago.....and they used to be the absolute best.
.
Was that due to Bloomberg or McDonalds? I can’t remember.
McDonalds has never had the best of anything at anytime, anywhere.
I’m afraid it is too late to fix the damage done to it’s criminal reputation.
True, but back in the 60s they were a darn good value.
(according to Morgan Spurlock I should have died decades ago....)
any attempt to really solve it would probably be labeled racist.
i won’t go to restaurants that need security guards there.
I can’t agree with you there....the fries were awesome and I’m not a big fry eater. They were the only ones I ever really liked.
No more.
.
I’d go if they stopped ghetto-izing things. Maybe if they would speak the King’s English and drop the hip-hop music, they’d attract a better paying, more loyal and higher-profit clientele.
Me? I wish they made good burgers, fries with real grease, shakes that looked like shakes and got the order right the first time. But then, they wouldn’t attract the all night long crowd or foo-foo faddies.
It was a corporate change due to the usual health hysteria.
.
If you went to McDonalds in Virginia or Missouri OT California you knew what to expect.
You got inexpensive food, consistent across any venue, and served quickly..
No one ate at McDonalds because the menu was exceptional. It was cheap, fast, and predictable.
There is a market for that. but the market is not because they did anything exceptional.
They use a different composition of beef, and they use less salt in the cooking process.
So no, your taste buds have not changed, and the food is worse tasting.
What really gets me is the quality - horrible. Service - horrible.
I posted this before, but the last 2 times I went to Chick-Fil-A, they were playing Christian music in the store.
Then, employees came up to me, smiling.
As you stated, a much more desirable experience.
I took my grandson to McDonalds yesterday to get him a shamrock shake (disgusting!). I noticed the menu had meals that came with a salad instead of fries. That’s why they are failing. No one goes to a burger joint to get a salad. People go to burger joints to get big greasy burgers and fries.
I read 5 news stories from today on McDonalds. Bloomberg, Forbes, NY Times, etc. None of them mentioned the black marketing emphasis and white flight of customers.
But McDonalds has lost 4% of its customer is a VERY short period of time.
With a company as large as McDonalds, a half percentage drop is a calamity. Four percent is a MASSIVE hit to their bottom line.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.