McDonald’s sales slip for first time since 2003
09 Nov 2012
McDonald's, the US-based fast food giant, saw its monthly sales go down instead of up for the first time since 2003, with a dip of 1.8 per cent in October at outlets opened in the last 13 months.
McDonald's is known for innovating its way through the recession – for example, providing home delivery in India where labour is cheap – but lately it appears to have lost some of its momentum.
The company said its third-quarter profit fell nearly 4 per cent, following on a slide of 4.5 per cent in the second quarter. The unprecedented dip came amid a stronger dollar and brutal US competition.
In October, sales were down across the world. Revenue fell 2.2 per cent in both the US and in Europe, and slipped 2.4 per cent in the Asia Pacific, Middle East and Africa regions.
The poor figures ''reflect the pervasive challenges of today's global marketplace,'' said Don Thompson, who took over as chief executive officer in July.
In the US, McDonald's tried to stem the decline by touting its 'value' menu and launching new offerings such as the premium Cheddar Bacon Onion sandwiches - an effort to compete with fast-casual and other higher-end rivals.