McDonald's sales drop across all global segments

Nov. 8, 2012

McDonald's Corporation today announced that global comparable sales decreased 1.8 percent in October. Performance by segment was as follows:

  • U.S. down 2.2 percent;
  • Europe down 2.2 percent; and
  • Asia/Pacific, Middle East and Africa down 2.4 percent.

"The McDonald's System remains focused on serving the evolving needs of our more than 69 million customers daily," Don Thompson, McDonald's president and CEO, said in a press release. "Though October's sales results reflect the pervasive challenges of today's global marketplace, I am confident that our strategies and the adjustments we are making in response to the current business headwinds will build sales momentum and drive sustained, profitable growth."

U.S. comparable sales were down due to modest consumer demand and heightened competitive activity, which offset the impact of local Dollar Menu advertising, the Monopoly promotion, and the recent launch of the Cheddar Bacon Onion premium sandwiches. Moving forward, the U.S. system will remain focused on enhancing its value leadership position by balancing everyday value messaging with affordable premium menu options.

In Europe, comparable sales dropped, as positive results in the U.K. were offset by declines across many markets. Amid the segment's ongoing economic uncertainty, the Europe system is reinvigorating its value offerings through increased advertising and new meal combinations at various price tiers, featuring core and premium menu items, and enhancing the restaurant experience to attract more customers.

In APMEA, October's comparable sales declined from negative results in Japan, Australia and other markets, including China. Looking ahead, the APMEA system seeks to further differentiate the McDonald's experience through daypart value platforms, locally relevant menu choices and customer conveniences.

Systemwide sales for the month decreased 0.8 percent and increased 0.6 percent in constant currencies.

According to Reuters, October marked McDonald's first monthly sales drop since March 2003. The downward trend is a result of increased competition and a weak economy across global markets.

Read more about operations management.

Topics: International , Operations Management

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