McDonald’s says a key sales figure rose 0.5 per cent in November, even as the world’s biggest hamburger chain faces tough competition and basically flat traffic in the US.
Its global sales performance was the same as in October. The stock slipped in pre-market trading.
Sales at stores open at least a year is a key gauge because it excludes results from stores recently opened or closed.
The company says the metric fell 0.8 per cent in the US. While breakfast items, chicken options and its new expanded value menu did well, that was pressured by intense competition and flat traffic.
In Europe, it increased 1.9 per cent on strong performances in the UK, France and Russia. This was offset by weakness in Germany.
It declined 2.3 per cent in the region including Asia, the Pacific, the Middle East and Africa, mostly because of softness in Japan.
The lacklustre results come as people are increasingly choosing foods they feel are fresh, healthy or higher quality, with chains such as Chipotle enjoying relatively stronger growth.
To keep pace, McDonald’s has introduced options such as chicken wraps and breakfast sandwiches with egg whites. But the company remains a target for health critics, and changing public perceptions about its food won’t be easy.
McDonald’s is also trying to win over diners with cheaper fare.
But its focus on its Dollar Menu has been a sore point with franchisees, who are seeing their profit margins hurt as costs for ingredients climb.
As such, McDonald’s recently revamped the menu as the “Dollar Menu & More” with a range of items costing up to $5.
McDonald’s has more than 34,000 locations worldwide.
Shares of the Illinois company fell 30 cents to $96.50 before the market open.
AP
