The same-store sales results of McDonald’s Corporation (NYSE:MCD) declined 0.3% in February as the company experienced weakness in the United States and Asia Pacific, Middle East and Africa (APMEA).
According to the largest fast food chain operator, the sales performance of its segments in the United States and APMEA dropped 1.4% and 2.6% respectively while its segment in Europe rose 0.6%.
McDonald’s Corporation (NYSE:MCD) is experiencing challenges trying to increase its sales performance, particularly in the United States. Last January, the sales performance of the company’s U.S. fell 3.3%. CEO Don Thompson previously stated that McDonald’s needs to improve its menu offerings as it became less relevant to some customers.
McDonald’s growth priorities
Today, Thompson reiterated that the growth priorities of McDonald’s Corporation (NYSE:MCD) globally include optimizing menus, modernizing the customer experience, and broadening the accessibility to McDonald’s brands. According to him, these priorities are the foundation of the company’s customer-centric approach in building its business over the long-term.
“We are intent on improving our business performance by thoughtfully evolving our approach to ensure that we are delivering the most compelling value, service and convenience to each of the approximately 70 million customers who choose McDonald’s each day,” added Thompson.
Severe weather conditions
McDonald’s Corporation (NYSE:MCD) explained that its U.S. sales was impacted by challenging industry dynamics and severe weather conditions last month. In APMEA, its sales were affected by weakness in Japan and Australia, as well as the shift in the timing of the Chinese New Year.
On the other hand, the largest food chain operator said its positive sale performance in Europe was due to the continued strong sales in the United Kingdom and France, which offset the ongoing weakness in Germany. McDonald’s Corporation (NYSE:MCD) said its European segment is benefiting from its local menu options, expanded convenience through breakfast and extended hours.
Peter Bensen, chief financial officer at McDonald’s Corporation (NYSE:MCD) said its relatively flat global comparable sales year-to-date will pressure margins in the first quarter. He emphasized that the company is “diligently strengthening” its performance, and he is confident that the management is taking the right actions to clearly align with customer’s needs and build momentum to drive long-term profitability.
