McDonald’s says bad weather hurt its US sales performance in January, representing another setback as the fast food chain fights to fend off rivals and get its menu right. The world’s biggest hamburger chain says sales fell 3.3 per cent at established US locations last month. Its global sales figure rose 1.2 per cent however, lifted by improvements in Europe and the region encompassing Asia, the Middle East, and Africa. The decline in the US is just the latest disappointment f
or McDonald’s, which has conceded that its kitchen operations got overly complicated by the pace of new menu offerings.
Don Thompson, CEO, also recently noted that the chain has lost some of its “relevance” with customers.
In hopes of attracting more diners, McDonald’s has been aggressively promoting its revamped Dollar Menu, which includes new burgers that cost more than a dollar.
Still, rivals including Burger King and Wendy’s have been promoting their value menus and special offers as well.
More broadly, McDonald’s is trying to adapt to shifting eating habits by introducing items that are positioned as healthy or fresh, such as its chicken wraps and breakfast sandwiches made with egg whites.
The efforts have yet to pay off. According to a regulatory filing, McDonald’s saw customer traffic at established locations decline 1.6 per cent in the US last year.
In January, its performance elsewhere in the world improved.
In Europe, sales rose 2 per cent at locations open at least 13 months, boosted by results in the United Kingdom and France.
In the region encompassing Asia, the Middle East, and Africa, the figure rose 5.4 per cent, helped by a shift in the timing of the Lunar New Year.
The company said “solid results” in Japan and Australia also helped lift performance.
McDonald’s, which has more than 35,000 locations around the world, also noted the opening of its first restaurant in Vietnam.
Shares of McDonald’s Corp. edged up 7 cents to $95.99 in premarket trading.
AP
