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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsMcDonald’s Profit Drops 30% as U.S. Sales Slump
By Leslie Patton Oct 21, 2014 9:46 AM ET
McDonalds Corp. (MCD), the worlds 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.
McDonalds 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 McDonalds 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.
Theres just some share loss thats 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. Its probably going to some of their direct competitors, and its 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 Wendys Co. is touting pulled-pork sandwiches. McDonalds newly appointed president for the U.S., Mike Andres, is working to simplify the chains 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
(27,553 posts)People are making other choices that don't include McD's
KeepItReal
(7,769 posts)That's the only thing I eat at McDonald's.
(plus that whole pink slime thing didn't help, either)
belzabubba333
(1,237 posts)Stallion
(6,473 posts)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
(29,503 posts)for 6-7 bucks. All else being equal, I'll take the deli every time.
tridim
(45,358 posts)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
(82,849 posts)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
(20,817 posts)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
(53,235 posts)JI7
(89,239 posts)2banon
(7,321 posts)Hugin
(33,032 posts)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
(17,742 posts)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.