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<a href="http://www.mcdonalds.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=mcdonalds-sales-still-struggling-in-october-917" target="_blank" rel="nofollow">McDonald&#8217;s Corp.</a> 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&#8217;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&#8217;s Experience of the Future, which the brand described " target="_blank" rel="nofollow<a href="">in its third-quarter earnings call</a> as " target="_blank" rel="nofollow<a href="">a realignment of the chain&#8217;s marketing department</a> and the rollout of a mobile solution for ordering and payment by smartphone.
&#8220;Today&#8217;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,&#8221; Thompson said. &#8220;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&#8217;s long-term potential.&#8221;
In McDonald&#8217;s two major international divisions, negative foreign-currency translation and weakness in key markets led to same-store sales decreases.
Europe&#8217;s comparable sales fell 0.7 percent in October, as very weak results in Russia &#8212; where the ruble is significantly devalued and where regulators have effected temporary closures of dozens of McDonald&#8217;s stores &#8212; overwhelmed positive sales in the United Kingdom.
McDonald&#8217;s Asia/Pacific, Middle East and Africa division reported a 4.2-percent slide in October comparable sales. This autumn&#8217;s supplier issue of meat in China continued to negatively affect sales in China and Japan, though Australia&#8217;s performance was positive.

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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 urg.....

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<a href="https://hardeesfranchising.com/">Hardee’s</a>, a 65-year-old burger chain best known for its Thickburgers and breakfast biscuits, is facing a fast-moving round of closures driven by a franchise dispute rather than a bankruptcy filing.&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">Inc. recently reported that</a> 77&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-hardees-franchise-costs-fees-profit-and-data-2721286">Hardee’s</a> restaurants are expected to close within two weeks as one of the brand’s largest franchisees exits the system.&nbsp;According to the report, Hardee’s is suing&nbsp;<a href="https://www.arcburger.com/">ARC Burger</a> — a franchise operator owned by&nbsp;<a href="https://www.highbluffcap.com/">High Bluff Capital Partners</a> — alleging the company fell behind on required payments and other contract obligations. Twenty-eight locations had already gone dark as of late December, with remaining sites scheduled to shutter across eight states: Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming.&nbsp;At the center of the complaint is the franchising “stack” of ongoing fees and pass-through costs that keep a system running. ARC Burger allegedly owes more than $6.5 million, including royalties, advertising fund contributions, technology and training fees, rent and taxes, and that payments stopped in December 2024. Hardee’s also argued in the lawsuit that the franchisee’s cash flow was not being used to bring accounts current.&nbsp;Hardee’s, for its part, is framing the shutdowns as a contractual enforcement issue, not a brand-wide retrenchment. “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales,” a Hardee’s spokesperson said.&nbsp;The situation highlights a familiar franchising pressure point: unit economics. Inc. reported that Hardee’s operates more than 1,800 U.S. restaurants and that average annual sales per location are less than $1.2 million, well below averages cited for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-wendys-franchise-costs-fees-profit-and-data-2722520">Wendy’s</a> and&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#stories">McDonald’s</a>. Lower volumes can leave franchisees with less room to absorb higher labor, food and occupancy costs while staying current on fees.&nbsp;Hardee’s said it is working to limit fallout for workers and communities and is looking for ways to reopen closed restaurants. For franchising, the next chapter will likely involve finding replacement operators, transferring sites and rebuilding compliance — a reminder that franchise growth depends as much on franchisee solvency and execution as it does on consumer demand.Read the original article&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

The closures stem from alleged unpaid royalties and missed franchise obligations by a major operator, not a broader chainwide collapse for the Hardee’s system.

McDonald’s sales still struggling in October

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