Online Staff Report
Fast food giant McDonald’s reported Nov. 8 that global revenue at restaurants open for at least 13 months fell 1.8 percent in the last month, the first time the number has dropped since March 2003.
The number eliminates the impact newly opened and closed restaurants have on the chain’s economic outlook, and focuses on money spent on food at both company-owned and franchised restaurants. The number does not reflect corporate revenue. The company has 34,000 locations worldwide.
The number fell 2.2 percent in U.S. and Europe in October, and 2.4 percent in Asia, the Middle East and Africa.
According to a report, McDonald’s Chief Executive Don Thompson said, “pervasive challenges of today’s global marketplace” are responsible for the drop.
The Oak Brook, Ill.-based company has long dominated the fast-food industry, but has seen sales slow as of late. Rivals Burger King and Wendy’s have both worked to revive their brands with new menus and ad campaigns, while Taco Bell has also seen improved numbers behind a new menu.
McDonald’s has said it is focused on promoting its value message, and plans to return to its dollar menu. The company had attempted to switch to an extra value menu, which charges slightly higher prices and generates better profit margins, but sales had fallen flat under that model.
Shares in McDonald’s were down 61 cents at $86.23 in premarket trading. The company had warned last month that sales were trending downward for the month.
Posted Nov. 8, 2012