McDonald's blames global sales drop on changing industry dynamics

posted on 11th March 2014

The world's biggest hamburger chain is finding cold weather, new competition and changing consumer habits are making a dent in its sales in many parts of the world, with global same-store sales down 0.3 percent.

The world's biggest hamburger chain said today that sales fell 1.4 per cent at established US locations. It blamed the harsh winter weather, but conceded that "challenging industry dynamics" also played a role. Globally, McDonald's said sales declined 0.3 per cent at locations open at least 13 months in February. It warned that its muted performance so far this year could hurt first-quarter profit margins.

In the region encompassing the Middle East, Africa and Asia, sales declined 2.6 per cent. The company cited weakness in Japan and Australia, as well as a shift in the timing of the Chinese New Year.

Executives at McDonald's, based in Illinois, acknowledge Americans' changing demands when it comes to fast food.

Read more at http://www.nzherald.co.nz/b...

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