McDonald's

McDonald's Goes 12 Months Without U.S. Sales Growth; Execs Promise Customization and 'Convenient' Payments

McDonald's Goes 12 Months Without U.S. Sales Growth; Execs Promise Customization and 'Convenient' Payments
Image credit: Jerry Wong | Flickr
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McDonald's sales slump has continued into October. On the bright side, the month wasn't as terrible as expected.

McDonald's global comparable sales fell 0.5 percent in October, a lesser drop than the 2.2 percent analysts were predicting.

Sales in Asia/Pacific, Middle East and Africa (APMEA) suffered the most, falling 4.2 percent. China and Japan are still struggling following the chicken supplier scandal in China this summer. However, Australia had a strong quarter, with McDonald's launching a higher-price customization menu that allowed customers to do add toppings like guacamole and pineapple to their burgers.

Related: McDonald's Tries to Tell Haters That 'Lovin' Beats Hatin''

In the U.S., sales dropped 1 percent, marking the 12th straight month without domestic sales growth. In an attempt to reverse the negative trend, McDonald's is revamping marketing and organizational structures, as well as simplifying the menu.

 "Today's consumers increasingly prefer customizable food options, dining in a contemporary, inviting atmosphere and using more convenient ways to order and pay for their meals," said McDonald's CEO Don Thompson.  "At McDonald's, we are diligently working to bring these elements of the customer experience to life through McDonald's Experience of the Future."

In October, McDonald's reported a global comparable sales decline of 3.3 percent. In addition to bad press and distrustful customers following the chicken scandal in China, franchisees blamed the poor quarter on overcomplicated menus, "idiotic" corporate marketing plans and a lack of corporate leadership. 

Related: Burger King Posts Strong U.S. Sales Growth as McDonald's Flounders

Edition: December 2016

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