News

McDonald’s US sales slip in May, analyst cites breakfast competition

June 9, 2014

McDonald's Corporation reported comp sales for May, with its U.S. performance slipping by 1 percent. In a news release, CEO Don Thompson cited “broad-based challenges” in the U.S. and said the company is strengthening its focus on customer service, value and menu initiatives.

After May’s sales were released, Howard Penney, a restaurant analyst at Hedgeye Risk Management, tweeted that Taco Bell’s breakfast initiative is slowing McDonald’s overall trends in the U.S.

Globally, the company is up 0.9 percent, buoyed by Europe (0.4 percent) and Asia/Pacific, Middle East and Africa, which was up 2.5 percent.

Europe's comp sales were driven by positive performance in the United Kingdom and France, and partly offset by negative results in Germany.

APMEA's sales were driven by a strong performance in China, including comparison against the prior year impact of Avian influenza, and positive performance across a number of markets, partially offset by ongoing weakness in Japan.

Systemwide sales for the month increased 2.4 percent, or 3.4 percent in constant currencies.

"Around the world we are pursuing opportunities to provide our customers with their favorite food and drink, create memorable experiences, offer unparalleled convenience and become an even more trusted brand,” Thompson said in the release. "We are intensifying our commitment to place the customer at the center of everything we do and are determined to create experiences that deliver the most meaningful impact for our customers and our business."