McDonald’s sales slide in the US, but global strength minimizes impact

McDonald's burger and fries
McDonald’s has posted a small drop in first-quarter comparable sales. (Source: Bigstock)

McDonald’s has posted a small drop in first-quarter comparable sales. However, US sales declined at a faster rate compared to international markets.

For the quarter ended March 31, global comparable sales decreased 1 per cent year-on-year. Excluding the impact of Leap Day in the prior year, global comparable sales were essentially flat.

Comparable sales fell 3.6 per cent in the US, primarily driven by negative comparable guest counts. International operated markets decreased 1 per cent, primarily impacted by negative numbers in the UK.

Meanwhile, international developmental licensed markets saw a 3.5 per cent improvement driven by the Middle East and Japan.

Consolidated revenues slid 3 per cent (down 2 per cent in constant currencies) and systemwide sales decreased 1 per cent (up 1 per cent in constant currencies).

On the bottom line, operating income and net income were down 3 per cent due to lower franchised and company-owned and operated margins. 

McDonald’s currently has more than 43,000 locations in over 100 countries, 95 per cent of which are owned and operated by independent local business owners.

The company posted a 0.1 per cent drop in global comparable sales last year.

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