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MCDONALD’S HAS ANNOUNCED year-on-year results today that show its numbers worldwide dipping once more.
Sales in the US and Asia were down 4% and 4.4% respectively compared with February 2014. The bad news is slightly softened by its European figures, where sales are up 0.7% compared with 12 months ago (a lot of the good news coming from the UK market).
When taking into account franchise sales (which, to be fair, are not accounted for in the company’s profits) global sales are down 8% for the year.
Big problems then.
With previous CEO Donald Thompson falling on his sword in January following the company’s stock market stagnation during his tenure, new chief Steve Easterbrook, who took the reins on 1 March, has it all to do.
There has been a positive response to Easterbrook’s ascension however with the company’s shares increasing by 3.7% to €89.8 in the year since Thompson’s demise.
The company’s results statement insists that today’s negative figures showcase the need to “evolve with today’s consumers and reset strategic priorities”.
The goal going forward is to be a true destination of choice around the world and reassert McDonald’s as a modern, progressive burger company.
The fast food giant has experienced some very trying times in recent years. Its US sales have been hit consistently by frenetic competition from the likes of Chipotle Mexican Grill, while its standings in Asia have taken an outright pummeling since 2014.
A series of health scares amongst other things in Asia saw the company lose €172 million in that market last year. Overall sales in Japan decreased a massive 29% in February alone.
The company’s results statement describes its Japanese woes as being attributable to “the broad-based consumer perception issues” there. Such issues have resulted from a series of calamities including a human tooth being found in a portion of fries in August last year.
This happening served to compound a similar PR inferno in China in July when the company had to cut ties with one of its vendors, Shanghai Husi Food Co., which was accused of repackaging old meat.
As part of its recovery plan McDonald’s is revamping its stateside operations in a bid to speed up service and draw customers back to its 14,000 restaurants there.
The company is planning to expand its ‘Create Your Taste’ program, a make-your-own-burger system, to more American restaurants in 2015.
McDonald’s currently operates some 35,000 restaurants worldwide.
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The foods bland and its expensive, not a winning formula.
It’s also incredibly unhealthy.
Not only that, it tastes delicious.
If going down the fast food route then I’d definitely do one of those Italian choppers -Borza, Macaris etc. Failing that I’d have Burger King before McD’s!
People who like to go on and on about not owning a television also don’t go to these places.
I stopping going to MacDonald’s several years ago even though I like their food. I just got tired of how they treat the communities they operate in, bullying their way through local planning laws, suing anyone who stands up to them, marketing directly to schools and kids sporting clubs.
‘modern, progressive burger company’
Yep
I think all chain food is crap: McDonalds, Burger King, KFC, Supermacs and Costa Coffee etc.
Costa and Starbucks have the worst coffee. Complete muck.
Uh huh. Costa coffee is bitter shite. Starbucks a grade or two better.
Hold on, you’re telling me that Starbucks sell coffee now?
Insomnia is decent though…
How can anyone even taste coffee with the amount of sugar, milk and general muck added to it?
McDonalds do great coffe
Now, I think it’s the other way round! Costa at least have nice cups and good cakes. Chacun à son goût!
They do, Thomas and it’s cheap as chips!
I honestly don’t get why people eat in McDonalds! The food doesn’t fill you. You’d nearly need to eat the entire menu to feel full after it. Everything on the menu tastes like syrup dipped in vinegar (except the drinks which just taste like syrup). And it has no nutritional value. I get that people like to get the odd bit of fast food (and I do like a good Italian chipper), but why go for something that tastes disgusting, offers no nutritional value and leaves you starving 15 minutes later?
They give you a toy with the Happy Meal :)
It’s that long since I ate in a McDonalds that I had entirely forgotten about Happy Meals. Still, that’s hardly an incentive for me! Oh this talk of food is making me hungry! I think I’ll have a nice half-pounder with cheese, chips, onion rings and a battered sausage tonight! :)
Ronald will qualify for job seekers allowance so no sweat
You put one scabby gherkin in your budgets, what do you expect? Never mind the chips that never go off and the nuggets made of slime and ammonia. And what happened to the turd burglar? Did he die? Oh wait, that was burger king.
‘Our’ Supermacs are mad expensive and portuons are scabby aswell. My local chipper does a fresh fillet chicken burger, with all the dressing, large chips (that would feed two people) and two cans of coke etc for 7.20 euro.
Supermacs the other night My order was one Chicken Breast Sandwich Meal and one small chips (both portions were tiny) and it came to 10 euro 40 cent!!!
Im not a big fast food eater but appreciate the price difference.
Not sure how it is in Ireland now but in Germany at least Burger King here has veggie options and other alternatives to the traditional “burger and fries” fast food menu. I had McDonalds a few weeks ago for the first time in years and it was so bland. I’d much rather spend another euro or two and get a healthy, filling meal somewhere else.
As a kid Coming from the country always Thoght it was suppose like a magical place. first time i went was in.Dublin when i was 16. Your local chipper is much more fulfilling
A prerequisite for any restaurant should be that they serve food. McDonalds doesn’t qualify. I’d take my chances with a 20 a day habit sooner.
Janey Mac that’s bad.
It’s muck and it treats its staff the same way so good luck to it.
I’d rather eat the packaging the food comes in
MacDonalds can be a handy quick bite to eat. The thing that gets me with them the last 10 yrs or so is that when you place your order they wait for the money rather than go get it while you sort it. This leads to longer cue’s .
If you’re going to eat that crap, here’s a suggestion have the right amount in your hand.
I hear they put the prices on their menu display ‘ s.
Give me super macs any day
Lose the clown,. He sure is scary, more suited to a Stephen King novel.
I love the irony in their sponsorship of the Olympics.
I eat it every now & then as a teenager, if I was out shopping with friends stopped when I Sussed mcds= headache. Total muck.
Cannot understand how i get thumbs down while something as ridiculous as a hambuglar gets a thumbs up…..
Shanghai Husi are OSI, an American company who supply McDonalds worldwide. They are one of many Western companies who think they can act like complete cowboys in Asia to cut corners and maximize profit.
Well they would definitely have more of my business if the Big Tasty was always on the menu. Mmmmm :)
There are absolutely no stereotypical Irish comments at all here.
Not one person is begrudging the success of anyone else.
This is a good news story, even for a fast food joint the whole place mings something awful
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