New York: McDonald’s Corp yesterday reported a bigger-than-expected drop in comparable global sales for February, hurt again by slow business in the United States.
The world’s biggest restaurant chain by revenue said worldwide sales at restaurants open at least 13 months fell 0.3 percent last month. US same-restaurant sales fell 1.4 percent.
McDonald’s Chief Financial Officer Pete Bensen said in a press release that the unchanged global comparable sales so far this year “will pressure margins” in the first quarter.
McDonald’s has reported nearly two years of turbulent sales at established US restaurants amid sluggish economic growth, increased competition and internal missteps that have complicated its menus and slowed service. That performance is heaping pressure on Don Thompson, the chief executive of McDonald’s since July 2012, who will face new challenges this year.
Beef prices are hovering near record highs and expected to keep climbing. Labour costs also are increasing: several states have raised their minimum wage this year. McDonald’s said it is trying to draw more customers by improving customer service and menu changes. McDonald’s is doubling down on breakfast and coffee to defend its No. 1 position in the United States as Starbucks debuts new breakfast sandwiches and Yum Brands’ Taco Bell chain gets into the game with food like waffle tacos.
In Europe, the company’s biggest market by revenue, restaurant sales last month rose 0.6 percent. Sales were down 2.6 percent in the Asia Pacific, the Middle East and Africa region. Sales in Britain and France led the way in Europe, while poor business in Japan weighed down sales in Asia. Reuters
