McDonalds Slump in the U.S. Offset by Buoyant Asia Figures

Published By : 09 Jun 2014 | Published By : QYRESEARCH

The world’s largest fast food seller McDonald’s Corp has reported a 0.9% increase in sales in May from stores that were open for at least 13 months. This growth is being attributed to higher sales in Asia, despite the slump in the U.S. market continuing. Analysts had estimated an increase of about 0.8% based on an average of 15 estimates derived from Consensus Metrix. In the United States, the world’s largest chain of restaurants reported a 1% decline. The company, that is based in Oak brook, Illinois, said. Surprisingly, analysts had estimated the company to gain 0.1% on this front.

Nearly 30% of the company’s revenue comes from domestic locations. But in the recent past, the company has been struggling to add more American customers after its kitchens were slowed down by the introduction of too many complex items. On the other hand, competition from brands such as Burger King Worldwide has stiffened, largely due to the discounts advertised by this company. Similarly, Taco Bell which has added new breakfast items such as waffle tacos and Cinnabon bites in the United States, has threatened McDonald’s market share.

On the other hand, the company’s sales in regions such as the Middle East, Africa, and Asia-Pacific saw a 2.5% rise. Surprisingly, these figures topped estimates of market analysts. In China especially, the fast food giant has maintained a focus on the expansion of its breakfast and delivery business, and the positive results of this move are becoming evident. Nearly 300 new McDonald’s restaurants are on the cards in China.
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