McDonald's sales drop for first time since 2003
In October, McDonald's said that marketing for its Dollar Menu in the U.S. was offset by "modest consumer demand" and heightened competition. Moving forward, the company said it would continue its everyday value marketing.
Andy Barish, a Jefferies analyst, noted that the disappointing results were despite a Monopoly promotion and the launch of its Cheddar Bacon Onion sandwiches. Barish also said McDonald's could face a tough fourth quarter given the challenging economic climate — even with the periodic appearance of its popular McRib sandwich scheduled for later this month.
In Europe, where McDonald's gets 40 percent of its business, McDonald's said it would offer new meal combinations at various price ranges amid ongoing economic uncertainty, and continue remodeling restaurants. The company said positive results in the United Kingdom were offset by declines across many other regions.
In Asia, the company said it plans to differentiate itself with menu offerings tailored to local tastes.
The company noted that the results were hurt by a calendar shift, with this year's October having one less Saturday and Sunday and one more Tuesday and Wednesday. Restaurants typically rake in more sales on weekends.
McDonald's shares fell $1.73, or 2 percent, to close at $85.13 Thursday. The company, which has more than 34,000 locations worldwide, had warned last month that sales were trending negative for the month.
Business Photo Galleriesview all
- 54680Oklahoma tornadoes: 'It took it all'
- 35701Oklahoma weather: Crews work to clear storm damage in Oklahoma City as the state braces for severe weather Sunday.
- 32594Oklahoma Severe Storm Updates
- 8907Wild hogs continue to be a growing menace across Oklahoma
- 8388Oklahoma State football: Limiting Wes Lunt's transfer options makes Mike Gundy look bad
- 5554Oklahoma City Thunder: What could Serge Ibaka learn from Hakeem Olajuwon?
- 4146OKC Thunder GM Sam Presti won't amnesty Kendrick Perkins