McDonald's Sales In US Continue To Fall


The global fast food giant McDonald's has had a tough time over the past year, with sales at existing stores failing to exceed growth of 1% year-on-year (y-o-y) since the second quarter of 2013. Same-store sales growth regularly exceeded 5% over 2010-2012 as McDonald's managed to perform particularly well in Western Europe and North America at a time when Europe posed enormous challenges for many food and drink companies, including in the food services sector.

Ironically given the structure of the ongoing global economic recovery, which in developed world terms is being driven more by the US than Western Europe, Europe was the best performing region for McDonald's in Q1 2014, with same-store sales increasing by 1.4% y-o-y, compared with just 0.5% for the group. Europe accounts for around 40% of total sales. McDonald's Q1 2014 earnings were down 5%, with the US mainly culpable as same-store sales dropped by 1.7% y-o-y, which represents the worst quarterly showing since McDonald's US slowdown began around Q4 2012. A particularly harsh winter was clearly a major factor here as it has been for so many consumer companies.

Breakfast Competition Growing

US A Problematic Market
McDonald's Same-Store Sales (% change y-o-y) By Region

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This article is tagged to:
Sector: Food & Drink
Geography: Global, Middle East, United Arab Emirates, Bahrain, Egypt, Israel, Iran, Jordan, Kuwait, Oman, Qatar, Saudi Arabia

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