McDonald’s Blames Economy as Sales Stall in July
NEW YORK (AP) - The Golden Arches are starting to lose some of their shine.
McDonald’s Corp. says a key revenue figure came in flat in July as diners pulled back amid a tough economy. After years of outperforming expectations, even through the recession, the stall is the latest sign that the world’s biggest hamburger chain is starting to feel the effects of the global economic volatility.
In the U.S., the company said its promotions failed to drive growth, and revenue at restaurant open at least 13 months dipped 0.1 percent. The Oak Brook, Ill.-based company also says it faced a tough comparison from a year ago, when it launched the mango pineapple smoothie.
The figure dipped 0.6 percent in Europe because of weakness in Germany and several Southern European markets. It fell 1.5 percent in the Asia Pacific, Middle East and Africa region - a key growth area for McDonald’s.
Sales in Latin America and Canada, which are not reported separately, helped pull overall results even with last year.
Revenue in restaurants open at least 13 months is a key measure of a restaurant chain’s performance because it excludes the impact of recently opened or closed stores. It does include the company’s temporarily closed restaurants.
The figures are a snapshot of money spent on food at both company-owned and franchised restaurants. They do not reflect corporate revenue.