McDonald’s reported a drop in its global sales figures. This was the first time it happened in almost a decade. Monthly sales in stores that were open at least 13 months dropped across the globe by 1.8 percent in October.
The drop in sales was attributed to the challenges that the global marketplace has been facing. Same-store sales dropped 2.2 percent in the United States and Europe. It has declined 2.4 percent in Africa, Asia Pacific, and Middle East regions.
Analysts said that Wall Street has been expecting a drop in sales figures from McDonald’s but not as steep as the reported figures. They also blamed the calendar. They said that there was one less Sunday and one less Saturday in October. Those days were considered as big sales days. Sales could have been slightly positive if adjusted for the lost days but it would still indicate a deceleration.
Last Thursday Wendy’s announced that its same-store sales in North America were up 2.7 percent in the third quarter. At the same time it reported a loss of $26.2 million or 7 cents per share compared to a loss of $3.97 million in the same period last year.
Consumers were also favoring chains that traditionally have competed less directly with McDonald’s, such as Chipotle and Taco Bell. All the hamburger chains were also trying to capitalize on the lower bacon prices. Wendy’s now has a Bacon Portabella Melt sandwich and Burger King has the White Cheddar Whopper sandwich with bacon.
McDonald’s has embraced social media platforms, such as Twitter, to promote its Cheddar Bacon Onion burger or CBO for short. It also promoted its Dollar Menu as well as its Monopoly tie-up. But consumer demand was low and this was why its sales dropped.
