McDonald's plots turnaround as sales keep falling
posted on 23rd April 2015
McDonald's will reveal initial details next month of a plan to halt its sales declines around the world. The company has been struggling in many markets for some time as it fails to keep pace with changing consumer trends. Although its new CEO says the company now has a 'hunger for change', some analysts believe that it is 'too little, too late' for the world's best-known franchise. Much will therefore depend on the May 4 announcement.
The world's biggest hamburger chain said global sales declined 2.3 per cent at established locations during the first three months of the year, with results for April expected to be negative as well. The drop included a 2.6 per cent drop in the U.S., where people are increasingly heading to places that market their food as more wholesome.
Meanwhile, McDonald's is struggling in other regions of the world as well. During the first quarter, the unit encompassing Asia, the Middle East and Africa reported an 8.3 per cent drop in sales at established locations, hurt by a supplier controversy in China last year and ongoing consumer perception issues in Japan.
Sales at established locations dipped 0.6 per cent in Europe because of softness in France and Russia.
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