Burn: McDonald’s Business Did Not Heat Up in February
Yet another disappointing sales report was released by McDonald’s (NYSE:MCD) Monday, which begs the question: will we ever see upbeat McDonald’s sales results again? According to Bloomberg, the Oak Brook, Illinois-based company said that sales at stores open at least 13 months fell 0.3 percent in February, reflecting the fourth straight month of sales slumps for its U.S. business. Domestic same-store sales slid 1.4 percent, while analysts expected a 0.6 percent decline. The same-store sales metric is generally considered a good indicator of a company’s health, because the figure doesn’t take into account the volatility of newly opened or closed locations.
In Europe, same-store sales rose 0.6 percent, and fell 2.6 percent in McDonald’s Asia Pacific, Middle East, and Africa region, according to Bloomberg. McDonald’s attributed its strong performance in France and other markets in Europe to its breakfast foods and extended hours, but although the world’s largest fast food chain has also pushed its breakfast offerings in the U.S., in that market, its sales continue to suffer.
McDonald’s blames its flattened demand in the U.S. on precarious consumer confidence and a stormy winter that has kept many U.S. businesses from prevailing, but even before the wintry winds blew in, it’s safe to say McDonald’s was already hurting. The company has released quarter after quarter of disappointing sales on account of health-conscious consumers no longer showing an interest in the chain’s fatty fare, or eating out in general. That’s a reality it has continued to work to upend.