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On Monday, McDonald’s Corp reported a higher-than-expected drop in terms of global sales at established restaurants for the month of November 2014, affected by the weakness in both USA and Asia. The company warned that the drop would definitely pressure margins for this quarter.
It is already the sixth consecutive month for McDonald’s to experience worldwide sales drop. The fast food chain company is currently fighting tight US competition, change of customer change, Europe’s political and economic turmoil and the after-effect of Asia’s supplier scandal.
Consensus Metrix told that the overall sales at restaurants open at least 13 months noted to be down by 2.2 percent for the previous month, by which 1.7 percent drop was expected by the analysts. On the other hands, the shares of McDonald’s Corp declined by 3.8 percent to $92.69 in afternoon trading.
Since the month of October 2013, the same-restaurant sales of McDonald’s USA have not yet increased. This is partly caused by the tough competition from smaller yet more agile direct competitors, such as Chick-fil-A, Wendy’s Co, In-N-Out Burger and Burger King Worldwide Inc.
For the sake of improving results, Don Thompson, who is the Chief Executive Officer of the company, took initiative to shake up management and to give much more powers to those who are local operators of the fast food chain.
