The world’s largest restaurant chain, McDonald’s Corporation (NYSE:MCD), has reported that their global comparable store sales declined by 1.8 % in the month of October. It is the first time in 9 years that their monthly comp sales have decreased. The last time that the company’s monthly comp sales declined was in April, 2003.
McDonald’s comparable store sales decreased 2.2 percent in the U.S. and Europe, and 2.4 percent in the company’s Asia Pacific, Africa and the Middle East segment (not all countries are included in these three segments which accounts for the difference here and the 1.8% overall decline). These declines were greater than most analysts’ expectations.
An article published by Bloomberg notes that McDonald’s Chief Executive Officer, Don Thompson, announced in October that the organization would advertise and promote a Dollar Menu to value-conscious American customers. The company will also be launching and marketing new food items in 2013. These steps are being taken to overcome a weak economic environment and competition from competitors such as Burger King and Wendy’s.
MCD fell 2% in yesterday’s trading and was down another percent earlier this morning. Currently MCD is trending upward along with the DOW and S&P 500.
From the company’s press release: “Don Thompson, President and Chief Executive Officer, and Pete Bensen, Chief Financial Officer, will participate in the Morgan Stanley Global Consumer Conference at 8:35 a.m. (Eastern Time) on November 13, 2012. This presentation will be webcast live and available for replay for a limited time thereafter at www.investor.mcdonalds.com.”