McDonald’s sales drop for first time since 2003
McDonald’s Corp. is having a tough time stomaching the competition.
The world’s biggest hamburger chain said Thursday that a key sales figure fell for the first time in nearly a decade in October, as it faced the double whammy of a challenging economy abroad and intensifying competition at home. The company, based in Oak Brook, Ill., says global revenue at restaurants open at least 13 months fell 1.8 percent for the month. The last time it dropped was in March 2003.
The figure is a key metric because it strips out the impact of newly opened and closed locations. It’s a snapshot of money spent on food at both company-owned and franchised restaurants and does not reflect corporate revenue.
McDonald’s says the figure fell in each of the three regions it reports. In both the U.S. and Europe, it fell 2.2 percent. In the region encompassing Asia, the Middle East and Africa, it dropped 2.4 percent. CEO Don Thompson cited the “pervasive challenges of today’s global marketplace” for the declines.
Canada, which is not included in the monthly sales figures, was positive for the month.