McDonald's October Global Same-store Sales Slump
McDonald's Corp. said its global same-store sales fell 0.5% in October, as it continued to grapple with a challenging market environment. The fast-food giant said same-store sales fell 4.2% in Asia/Pacific, Middle East and Africa, and were down 1% in the U.S. and 0.7% in Europe. "Today's consumers increasingly prefer customizable food options, dining in a contemporary, inviting atmosphere and using more convenient ways to order and pay for their meals," Chief Executive Don Thompson said in a statement. The company is "moving with a sense of urgency to improve the trajectory of our financial performance while taking the actions necessary to pursue the brand's long-term potential," he said. The APMEA performance reflects the continued impact of a meat supplier issue in Japan and China, while in the U.S., the company continues to suffer from changing consumer tastes, particularly among the millennial generation. In Europe, the chain was hurt by the weaker euro and Russian ruble, which exacerbated operational issues caused by that country's dispute with Ukraine. McDonald's shares were up 0.6% in premarket trade, and are down 2% in the year so far, while the Dow Jones Industrial Average has gained 6%.
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