McDonald’s sales still struggling in October

McDonald’s Corp. reported that global same-store sales decreased 0.5 percent in October, once again comprising negative performances in its three operating areas of the world. In the United States, a 1-percent decrease in same-store sales during the month underscored for company officials the urgency with which McDonald’s needs to roll out its overhaul of marketing programs. In prepared comments, chief executive Don Thompson said the company was working diligently to prepare the launch of the McDonald’s Experience of the Future, which the brand described in its third-quarter earnings call as a realignment of the chain’s marketing department and the rollout of a mobile solution for ordering and payment by smartphone. “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,” Thompson said. “Although October results reflect our current business challenges, we are moving with a sense of urgency to improve the trajectory of our financial performance while taking the actions necessary to pursue the brand’s long-term potential.” In McDonald’s two major international divisions, negative foreign-currency translation and weakness in key markets led to same-store sales decreases. Europe’s comparable sales fell 0.7 percent in October, as very weak results in Russia — where the ruble is significantly devalued and where regulators have effected temporary closures of dozens of McDonald’s stores — overwhelmed positive sales in the United Kingdom. McDonald’s Asia/Pacific, Middle East and Africa division reported a 4.2-percent slide in October comparable sales. This autumn’s supplier issue of meat in China continued to negatively affect sales in China and Japan, though Australia’s performance was positive.