McDonald’s Suffers First Sales Drop Since 2003
The Golden Arches are sagging just a little bit, as fast-food kingpin McDonald’s reported a near 2 percent decline in overall revenue for their locations that have been open for at least 13 months. Industry experts say this is the first time the burger giant has experienced a month-to-month drop in that sector since spring 2003.
“The figure is a key metric because it strips out the impact of newly opened and closed locations,” according to the Associated Press. “It’s a snapshot of money spent on food at both company-owned and franchised restaurants, and does not reflect corporate revenue.”
However, these numbers do not appear to be a sign of pending doom for the restaurant chain. Rather, it seems that McDonald’s competition seems to be picking up their game. Burger King, Wendy’s and Taco Bell have all recently introduced new, innovative menu items that seem to be taking away a bit of McDonald’s market share—but not too much.
McDonald’s has been faced with slower consumer demand since the economy bottomed out nearly four years ago. Because of that (and its competitors’ recent innovations), the restaurant has been experimenting with alternative ways to help drive sales.
“One way McDonald’s is responding is to push its Dollar Menu of low-cost options,” said company president and chief executive Don Thompson. “I am confident that our strategies and the adjustments we are making in response to the current business headwinds will build sales momentum and drive sustained, profitable growth.”