This Tuesday, June 28, 2016, photo shows a McDonald’s sign in Miami.
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McDonald’s reported a 3.6 per cent fall in quarterly revenue as fewer customers visited its restaurants, mainly in the United States.
McDonald’s sales edged up just 1.8 at established US locations in the second quarter, short of Wall Street expectations, as it continues its attempts to turnaround its business.
Customers could have had their fill though, after the fourth consecutive quarter of positive same-store sales growth across all business segments.
The results came after chains such as Dunkin’ Brands Group Inc DNKN.O , Starbucks Corp SBUX.O and Wendy’s Co WEN.O said economic malaise, social unrest, political uncertainty, weather and ill-timed price increases cooled demand in the latest quarter.
Investors are now keenly awaiting what else McDonald’s is cooking up after British chief executive Steve Easterbrook – who joined the company in March a year ago – moved to paring down the menu and become more transparent about how its food is made.
In October previous year McDonald’s brought in an all-day breakfast menu in the U.S. to great fanfare. To keep momentum going, McDonald’s plans to expand the offerings later this year. Like other major fast-food chains, McDonald’s is trying to shake its image for serving unhealthy, processed food as it faces pressure from smaller players promising better alternatives.
Internationally, sales growth was strongest in China, Russia, Britain, Canada and Australia, the company said.
But bottom-line results, in which earnings per share fell only one cent to $1.25 owing to a significant share buyback operation, reflected a $230 million charge from refranchising operations and tepid growth across markets.
Excluding the items, McDonald’s earned $1.45 per share, according to Thomson Reuters calculation, topping the average estimate of $1.38.
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Total revenue declined to $6.27 billion from $6.50 billion.
