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McDonald's sales slip for ninth successive month

McDonald's has admitted an "urgent need to evolve" as sales fell for the ninth successive month. ...
Newstalk
Newstalk

16.21 9 Mar 2015


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McDonald's sales slip...

McDonald's sales slip for ninth successive month

Newstalk
Newstalk

16.21 9 Mar 2015


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McDonald's has admitted an "urgent need to evolve" as sales fell for the ninth successive month.

February sales dropped by 1.7 per cent worldwide, and by 4 per cent in established restaurants in the US, the Guardian reports.

CEO Steve Easterbrook, who took charge last month, has promised to turn around the lagging fast food giant as it continues to lose ground to US competitors like Burger King, Wendy's, Chipotle and Five Guys.

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“Creating consistently relevant and satisfying customer experiences have been hallmarks of McDonald’s business and historic success,” the company said in a statement.

“However, consumer needs and preferences have changed, and McDonald’s current performance reflects the urgent need to evolve with today’s consumers, reset strategic priorities and restore business momentum. The goal going forward is to be a true destination of choice around the world and reassert McDonald’s as a modern, progressive burger company.”

Sales in the Asia-Pacific, Middle East and Africa region fell 4.4 per cent following a number of food safety scandals. In January a piece of vinyl was found in a chicken nugget in Japan, while last year a Chinese supplier was accused of selling expired meat to restaurants. 

The chain has fared better in Europe, where sales grew by 0.7 per cent, following an increase of 0.5 per cent in January.

Easterbrook recently called McDonald's a “typically a risk-averse company” but said “time doesn’t allow you to do that when you are in a turnaround. We try to add some pace and add some agility.”


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