McDonald’s Profit Drops 30% as U.S. Sales Slump

[Purveyor]

By Leslie Patton Oct 21, 2014 9:46 AM ET

McDonald’s Corp. (MCD), the world’s largest restaurant chain, said third-quarter profit fell 30 percent as U.S. sales slumped for the fourth straight quarter.

Net income dropped to $1.07 billion, or $1.09 a share, from $1.52 billion, or $1.52, a year earlier, the Oak Brook, Illinois-based company said in a statement today.

McDonald’s has been struggling to draw American diners as rivals offer deals and introduce new items. The company also has lost customers by boosting prices on burgers to make up for rising labor and ingredient costs. Sales at McDonald’s U.S. stores open at least 13 months fell 3.3 percent in the third quarter, trailing the 2.9 percent decline estimated by analysts in a Consensus Metrix survey.

“There’s just some share loss that’s going on” in the U.S., said Sara Senatore, a New York-based analyst at Sanford C. Bernstein & Co. who has the equivalent of a hold rating on the shares. “It’s probably going to some of their direct competitors, and it’s probably going to potentially some of the fast-casual” chains.

Burger King Worldwide Inc. (BKW) recently started selling a 10-pack of chicken nuggets for $1.49, while Wendy’s Co. is touting pulled-pork sandwiches. McDonald’s newly appointed president for the U.S., Mike Andres, is working to simplify the chain’s menu and feature more locally relevant and customizable fare.

more...

http://www.bloomberg.com/news/2014-10-21/mcdonald-s-profit-drops-30-as-u-s-sales-slump.html

[JCMach1]

1. Reality= strikes have become a PR disaster for the company...

People are making other choices that don't include McD's

[KeepItReal]

2. Knew that 10:30 breakfast cut off would bite em in the ass one day

That's the only thing I eat at McDonald's.


(plus that whole pink slime thing didn't help, either)

[belzabubba333]

3. that's b/c i stopped eating their double cheese burgers

[Stallion]

4. When they Breached the 6-7 Bucks for Lunch Barrier-Some Started to Question Worth

hey cheap lunch for cheap prices is OK sometimes. But it really isn't so cheap now, really doesn't taste very good and the quality is clearly well below par versus its competitors

[closeupready]

6. Yes. I can go to the deli and get something much healthier and tastier

for 6-7 bucks. All else being equal, I'll take the deli every time.

[tridim]

11. Yep. I remember specifically 12 years ago when a Big Mac Meal could be had for $3.29.

And $2.99 on sale.

Today, a Big Mac meal is almost $7.00. That's not even close to what most McD's customers consider a "value".

No minimum wage hike, just a 200%+ price hike across the board. That's not going to work, greedy bastards.

[gratuitous]

5. McDonald's blames rising labor costs?

Not that the people behind the counter would notice. Maybe it's just inartful wording by the reporter, who means the rise in labor costs in supplying McDonald's with their store products?

[Johonny]

10. Last time I went to a McDonalds there were no laborers

there were 3 people running the whole show. 1 manager, 1 manning the drive through, and one cooking, getting the drinks, and doing the register. It was amazing to see these three people manage to bang out customers. Yet you know I guess they could scale down to 1 or 2 people and still get by Not only are you under paid at that place but they over work you for sure. Meanwhile most of the money goes to the dead weight of the corporate rather than the hard working franchise. That is the problem with McDonalds and it hasn't gotten better over the years.

[valerief]

7. More pink slime on the burgers! nt

[JI7]

8. michelle obama's fault

[2banon]

9. Of course, the BDS movement isn't a factor, just bad "food" and high prices.

[Hugin]

12. This corresponds with the switch to the crappy white onions and cheap pickles on the QPs.

Rendering them ... yuck ...

The slippery slope began with ending the Angus burgers...

OK... and their latest masterpiece of WTF is the Jalapeno burger. I would not in a BILLION YEARS order a Jalapeno burger... ever.

Are we clear on that?

Glad I sold my stock in McD's it was a good ride, but, it's over.

[Duer 157099]

13. Well... I'm gonna have to disagree on the jalapeno burger...

I haven't eaten at McDs in years until I tried one of those jalapeno burgers... they are pretty damn good. VERY spicy, not what I would expect from McDs.

Just needs some mustard added, which I do.