McDonald’s reports first sales slump in almost 10 years

By Nicholas Robinson

- Last updated on GMT

McDonald's results show poor performance
McDonald's results show poor performance
Global burger giant McDonald’s has released global comparable sales figures for the month ending October 2012, which show a 1.8% slump in business.

Poor sales performances were repeated across the globe and is the first time in almost a decade that McDonald’s has experienced such losses.

Sales in the US were down by more than 2% as were sales in Europe. Asia/Pacific, the Middle East and Africa also saw sales decrease by 2.4%.

President and chief executive officer for McDonald’s Don Thompson said: “The McDonald’s System remains focused on serving the evolving needs of our more than 69 million customers daily. Though October’s sales results reflect the pervasive challenges of today’s global marketplace, I am confident that our strategies and the adjustments we are making in response to the current business headwinds will build sales momentum and drive sustained, profitable growth.”

The decline in US sales was attributed to modest consumer demand and higher activity from competitors, which caused problems for Dollar Menu advertising, the Monopoly promotion, and the launch of the Cheddar Bacon Onion premium sandwiches. However, business in the US will focus on growth by reinforcing its everyday value message, said the company.

According to McDonald’s, the poor sales performance in Europe was caused by the economic uncertainty, which offset positive results in the UK.

In the segment that covers Asia, the Middle East and Africa, McDonald’s said negative results were led by poor performance in Japan, Australia and China.

Related topics: Financial, Industry & Markets, Retail

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