April 27, 2024

McDonald’s Reports Lower Sales in April

The company, which had warned of a decline last month, said same-store sales fell 0.6 percent globally. That reflected an increase of 0.7 percent in the United States, where it recently introduced its chicken McWraps.

But sales fell 2.4 percent in Europe, its biggest market by revenue. The company said it was seeking to improve results in the region by emphasizing “everyday affordability” and keeping stores open longer.

In the region encompassing Asia, the Middle East and Africa, sales were down 2.9 percent. The chain blamed the impact of the avian flu in China for the decline, as well as softness in Japan and Australia.

Yum Brands, which owns KFC and is China’s biggest Western fast-food company, has been hurt by the new strain of avian flu as well. It warned late last month that sales at established restaurants in China were down about 30 percent in April. Yum is also trying to recover from a controversy over its chicken suppliers that surfaced late last year.

After years of outperforming rivals, McDonald’s has been struggling to increase sales as it faces intensifying competition, changing eating habits and weak growth in the broader restaurant industry. Late last year, the company reported a decline in its monthly sales figure for the first time in nearly a decade. Soon after, the company ousted the head of its American division.

Sales at restaurants open at least 13 months is an important measurement because it strips out the impact of newly opened and closed locations.

McDonald’s, which has more than 34,000 locations around the world, noted that it had one fewer Sunday and one more Tuesday in April of this year compared with last April. The chain’s sales are generally stronger on weekends.

Article source: http://www.nytimes.com/2013/05/09/business/mcdonalds-reports-lower-sales-in-april.html?partner=rss&emc=rss