On Monday, McDonald’s reported global same-store sales that declined 2.2% month-on-month.
This missed analysts’ expectations for a 1.7% decline.
In the US, the story was even worse for the fast-food giant, as same-store sales fell 4.6%.
Here’s the staggering chart showing the collapse in US same-store sales over the past five years.
Same-store sales represent sales at all McDonald’s restaurants open at least 13 months, including those temporarily closed.
On Monday, McDonald’s also announced that its fourth-quarter results would most likely be affected by the continued negative top-line performance, as well as a $US0.07 to $US0.10 per share earnings impact because of a supply issue in China and a $US0.07 to $US0.09 per share earnings impact because of the strength of the US dollar.
In a statement, McDonald’s said it was “diligently working to enhance its market, simplify the menu, and implement a more locally driven organizational structure to increase relevance with consumers.”
The disappointing numbers from McDonald’s come as the chain faces increasing competition from restaurants like Chipotle, and last week we noted that even the Federal Reserve’s field work on the US economy showed the consumer shift toward outlets like Chipotle and away from chains like McDonald’s.
In the third quarter, Chipotle’s same-store sales rose 19.8%. McDonald’s same-store-sales fell 3.3% over the same period.
In premarket trade, McDonald’s shares were down more than 3%, and despite broad gains for both the Dow and the S&P 500 this year, McDonald’s shares have done nothing year-to-date, falling about 1%.
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