McDonald’s Corporation (NYSE:MCD) reported today that is global comparable sales declined by 1.8 percent in October. During the same period last year, the fast food giant report a 5.5 percent increase in global sales.
For the month of October, McDonald’s Corporation (NYSE:MCD) said its sales dropped by 2.2 percent in the United States, 2.2 percent in Europe, and 2.4 percent in Asia, Pacific, Middle East, and Africa (APMEA). During the same period last year, the company reported sales increases by 5.5 percent in U.S, 4.8 percent in Europe, and 6.1 percent in APMEA.
In a statement, Don Thompson, president and chief executive officer of McDonald’s said, “The McDonald’s System remains focused on serving the evolving needs of our more than 69 million customers daily. 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.”
According to the company, the sales decline in the United States is caused by modest consumer demand. The impacts of the McDonald’s Local Dollar Menu, Monopoly promotion, and the recently launched Cheddar Bacon Onion premium sandwiches were offset by increased competition. McDonalds said the declines across many markets in Europe resulted in the weak sales performance of the company in the region.
McDonald’s Corporation (NYSE:MCD) is focused on boosting its value leadership position in the United States by offering affordable premium menu options. In Europe, the food giant is also enhancing its value offerings by increasing advertising, new meal combinations with different prices, and improving restaurant experience. In the APMEA region, the company is seeking to differentiate the McDonald’s experience further, by offering locally relevant menu choices and customer conveniences.
McDonald’s Corporation (NYSE:MCD), along with competitors, including Burger King WorldWide Inc (NYSE:BKW), implemented major changes in business operations last year. The company removed its mascot and hired celebrities to promote its products.
The Wendy’s Company (NASDAQ:WEN) improved the image of the company from a typical-fast food chain to a high-end hamburger chain by offering high quality burgers and sides. The food chain recently introduced the Son of Baconator and the Asiago Ranch chicken sandwiches.
The shares of McDonald’s Corporation (NYSE:MCD) were down by 1.45 percent to $85.60 per share on Monday morning at the New York Stock Exchange.