Saturday 23 November 2024
 
»
 
»
Story

McDonald's global sales slump in April

NEW YORK, May 9, 2015

US fast-food giant McDonald's, fighting sluggish sales, reported yesterday smaller-than-expected dips in global sales and in its key home market in April.

Chief executive Steve Easterbrook, the veteran British McDonald's executive who took the helm of the iconic American company in March vowing to turn it around, said the April sales numbers show 'the significant work ahead.'

'We are moving quickly to deliver a better experience to our customers and to realise our vision to become a modern, progressive burger company,' Easterbrook said in a statement.

Global comparable sales dipped 0.6 per cent in April, much smaller than the 1.9 per cent drop expected by analysts.

In its key US market, comparable sales fell for the 13th consecutive month, by 2.3 per cent in April, less than the 2.7 per cent decline estimated.

Europe was a bright spot in April, with sales rising one per cent, lifted by gains in Britain and Germany that were partly offset by declines in France and Russia.

In the Asia-Pacific, the Middle East and Africa region, sales dropped 3.8 per cent.

With 36,000 outlets in more than 100 countries, the 'Golden Arches' chain has been under pressure from falling customer traffic, with sales falling 2.4 per cent in 2014 to $27.4 billion.

Earlier this week Easterbrook unveiled a global turnaround plan to combat the slump which has reflected in part rising competition from restaurant chains perceived as offering healthier alternatives, such as Chipotle.

The company will reorganise its foreign market divisions currently based on geography with a breakdown reflecting similar economic and competitive dynamic factors.

The overhaul also includes selling off 3,500 company-owned restaurants to franchisees by end-2018.-Reuters




Tags: McDonald's |

More Retail & Wholesale Stories

calendarCalendar of Events

Ads