McDonalds reports bigger than expected drop in sales

McDonald’s has reported a bigger-than-expected drop in comparable global sales at established restaurants for February, hurt by competition and bad weather that battered US sales.

The world’s biggest restaurant chain by revenue said worldwide sales at restaurants open at least 13 months fell 0.3 per cent last month.

McDonald's chief financial officer Pete Bensen said in a press release that the unchanged global comparable sales so far this year "will pressure margins" in the first quarter.

McDonald’s has reported nearly two years of turbulent sales at established US restaurants amid sluggish economic growth, increased competition and internal missteps that have complicated its menus and slowed service.

US same-restaurant sales fell 1.4 per cent, worse than the 0.6 per cent decline that analysts had estimated. In Europe, which has edged out the United States as the company’s biggest revenue market, restaurant sales last month rose 0.6 per cent. Sales were down 2.6 per cent in the Asia Pacific, the Middle East and Africa (APMEA) region.

Analysts looked for Europe to be down 0.1 per cent and for APMEA to drop 1.1 per cent. Sales in Britain and France led the way in Europe, while poor business in Japan weighed down sales in Asia.

Reuters