January proved to be a tough month for McDonald’s, with the fast food chain reporting a global comparable sales decline of 1.9 per cent.
The company was hit hardest in the Asia/Pacific, Middle East and Africa (APMEA) regions, where comparable sales decreased by 9.5 per cent.
Contributing factors include the looming Chinese New Year, an ongoing weakness in Japan and consumer sensitivity around the recent supply chain issue in the chicken industry, reports InsideRetail.
Sales decreased by 2.1 per cent in Europe, with the chain proving less popular in nations including Germany and France than countries such as the UK and Russia, where results were positive.
The US, arguably the world’s most fanatical fast food nation, reported a comparable sales increase of 0.9 per cent for the month.
This is most likely due to the introduction of a new one dollar menu option, the grilled onion cheddar burger.
The chain’s convenience and modernisation strategies may also be contributing factors, reports InsideRetail.
Overall, McDonalds reported systemwide sales of 0.3 per cent, or 0.7 per cent in constant currencies for the month of January.
Don Thompson, president and CEO, McDonald’s said “while January’s results reflect today’s challenging environment and difficult prior year comparisons, I am confident that our unwavering commitment to delivering an exceptional restaurant experience will enhance our brand’s relevance and drive long-term results.”