McDonald’s Posts Another Month of Falling Sales

10 Mar 2015 --- McDonald’s Corporation has announced that its global comparable sales decreased by 1.7% in February with a 4% drop in the US, which is believed to be the result of increasing competition by perceived ‘healthier’ fast dining concepts, such as Chipotle and Five Guys Burgers.

Sales for the company were also down in the Asia/ Pacific, Middle East and Africa (APMEA) regions (by 4.4%), while Europe saw some growth by 0.7%, driven by strong sales in the UK, according to the company. New menu offerings in the UK are said to be a contributor of this growth.

In the APMEA region, the company points to “consumer perception issues in Japan” as the root cause of the decline in sales. “Rebuilding trust by strengthening McDonald’s quality and value perceptions is one of APMEA’s top priorities for 2015,” the company said. 

The company’s new chief executive, Steve Easterbrook, is working on a turnaround plan for the global fast-food chain, but industry experts say that the latest sales figures show that this turnaround will take a considerable period of time to have any positive effect.  
Easterbrook, who was appointed in this role earlier this month, is a British executive who once worked at McDonald’s but more recently held positions in Pizza Express and Wagamamas. He rejoined McDonald’s in 2013. 

As part of the turnaround strategy, the company said it plans to reassert itself as a “modern, progressive burger company”, is response to changing consumer needs and preferences. The company also noted that its current poor performance “reflects the urgent need to evolve with today’s consumers, reset strategic priorities and restore business momentum”. 

The poor performance has been an ongoing issue for the chain for the past two years, as American consumers increasingly flock to rivals that boast of fresher and ‘healthier’ products. In addition, supplier-safety issues in Asia also hit the group hard. 

Last week the company announced its plans to cut antibiotic use in its US chicken over the next two years, which would make it the biggest restaurant chain to make this kind of commitment.