McDonald’s Monthly Sales Slump Worst Since 2003
By Leslie Patton Sep 9, 2014 6:26 PM ET
Sept. 9 (Bloomberg) -- McDonalds said sales at stores open at least 13 months fell 3.7 percent in August as its U.S. slump continued for the fourth straight month. Julie Hyman reports on In The Loop. (Source: Bloomberg)
McDonalds Corp. (MCD), the worlds largest restaurant chain, posted the worst same-store sales decline in more than a decade, hurt by sluggish demand in the U.S. and a health scare involving a Chinese supplier.
Sales at stores open at least 13 months fell 3.7 percent in August, the Oak Brook, Illinois-based company said in a statement today. Analysts estimated a 3.1 percent drop. McDonalds also said that supplier problems in China will reduce third-quarter earnings per share by 15 cents to 20 cents.
McDonalds, which has more than 14,200 U.S. locations, is facing challenges at home and abroad. Domestically, its been relying on discounts, limited-time offers and remodeled stores in a failed attempt to reignite growth. In China, meanwhile, the companys meat supplier OSI Group LLC was investigated for changing the expiration dates on food, triggering shortages and a sales slump.
There isnt a lot of good news here, Peter Saleh, a New York-based analyst at Telsey Advisory Group, said in an interview. China is going to be under pressure for a while; their traffic is down in the U.S.
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http://www.bloomberg.com/news/2014-09-09/mcdonald-s-august-sales-slump-as-u-s-declines-for-fourth-month.html
I hadn't been in a McDonald's for at least 5-6 years until 2 weekends ago. I had a buy one Big Mac or Quarter Pounder get one free and I was in the mood for real 'junk food'.
I was shocked at the price of their Quarter Pounder...$4.09. Really? The Big Macs were 2.69 so that is what I walked out of there with. Dollar menu is all but gone also.
I'll check back in another 5-6 years...