McDonald's February sales drop horrifically, US sales report showed the shocking 4% slump.
Image: McDonald's ©
In Asia-Pacific, Middle East and Africa (APMEA) sales are down 4.4% versus forecast 3.1%. Europe is the only major region with a positive number with same-store sales up 0.7% while the forecast was only 0.2% increase. Overall, global comparable sales fell 1.7% versus 0.3% decline forecasted. US sales were expected to have a 0.7% drop, but nowhere near a 4% slump reported.
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This is the first sales report for McDonald’s under new CEO Steve Easterbrook. Easterbrook started his new position only on March 1, therefore it will be some time before he's viewed as accountable for the monthly reports and February result would still be technically on the previous CEO. During his first week as CEO of McDonald’s, Easterbrook attended a meeting with franchisees and announced major news of a plan to improve the chicken McDonald's currently sells. However, February sales report clearly highlights the challenges the world's largest publicly traded restaurant operator is facing.
In both 2013 and 2014, McDonald's sales have been decreasing. As a result, the company has been trying to improve its brand image, remodel stores, and restructure the menu The most recent attempt to boost sales is the new plan to start selling chicken that wasn't given certain antibiotics, in an attempt to move towards the more "natural" food idea.
Although December and January have been slightly better months for McDonald's US sales, overall sales in this part of the world have been awful for months. The consecutive months of same-store sales growth hadn't been seen in more than a year in McDonald's main market, which has 14,000 of its 36,000 locations.
In Europe, the U.K. and Germany February sales results were positive. Russia's results, slow for several months, were negative.
MT4 GRAPH: McDonalds
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