McDonald's sees slack U.S. demand, so it's cooking up dollar breakfast deals
Filed under: Company News, Economy, Investing, Earnings, McDonald's
It seems McDonald's (MCD) is more popular overseas than at home. The iconic fast-food chain reported Monday that sales at outlets open at least 13 months rose 3.3% overall last month as diners flocked to its restaurants in Europe, Asia and Africa. In the U.S., however, customers were less enthusiastic. Domestic same-store sales for the Oakbrook, Ill., company were basically flat in October, slipping 0.1%. The slack demand in the U.S. may be a primary reason the ubiquitous burger chain plans to offer a dollar menu for breakfast items beginning in January, The Wall Street Journal (subscription required) reported.
Europe provided McDonald's with its largest sales jump last month, rising 6.4%, helped by robust demand in the U.K., France and Germany. Comparable-store sales in the Asia Pacific, Middle East and Africa market rose 4.7%, with sales strongest in Japan and Australia.
In the U.S., McDonald's said the comparison to strong prior-year performance resulted in nearly flat U.S. sales, despite good demand for dollar-menu items, premium Angus burgers and McCafe espresso-based coffees.
The plan to begin offering a dollar breakfast menu has been "overwhelmingly approved" by the chain's national advertising fund, which will run a nationwide ad campaign during the first half of next year, the Journal said, citing a document reviewed by Dow Jones Newswires.
Breakfast Burritos for a Buck
The breakfast menu strategy will be put to a vote of regional advertising groups with the national group's recommendation and a sense of urgency "to ensure that breakfast continues to be a strong contributor to our overall sales, guest count and profit growth," the document said.
It's likely McDonald's breakfast sales have been hurt by the rising number of unemployed workers in the U.S. On Friday, the Labor Department reported the nation's unemployment rate rose to 10.2%. Greater numbers of jobless workers hamper breakfast sales because fewer commuters stop for a morning meal before heading to work. Some of the fast-food industry's most frequent visitors -- teenagers and men between the ages of 18 and 35 -- have even higher rates of joblessness, Marketwatch.com reported.
Shares of McDonald's were higher in early trading on Monday, advancing about 1.5% to $62.70 a share.
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Reader Comments (Page 1 of 8)
11-09-2009 @ 12:07PM
Diane Dickson said...
Is it all about the Price? Last time I drove through Mc Donald's and Said, I have my Own Mug,,can I get some coffee..They Said,,:Nope" You have to take our..,,cup..
I say..get on line with the wave of,,Earth Friendly in Fast Food McDonald's and watch your numbers soar.
Notice the Countries that do not see the drop or flat lining in Sales, are not as dependent on Auto's as Transportation,,and Hallelujah, the DriveSet are waking up to,,Healthier lifestyle to teach their young ones..So Dollar? Maybe, but Possibly,,waking up to smell the coffee on Teaching their Young One's to Choose Eating for Nutrition and Reducing Disposposable Trash while using Real Dishes byod, increases the fullfillment til the Next Meal. (and less plastic, styrofoam, and unneeded waste).
Reply
11-09-2009 @ 2:15PM
hookmrl said...
mcdonalds burgers 50% meat --50% fat get a frozen one take it home and cook it in a skillet and see how much grease trash trash trash
11-09-2009 @ 8:33PM
kathy said...
we dont know where your cup has been , and we dont want to bring it into our kitchen.... with your germs on it....to touch it would require us to rewash our hands ...between your order and the next...a real time consumer if everyone wanted their coffee in their own mugs..(would you like us handling your cup after handling someone elses without washing??)..what if its dropped? if we dropped ours, no problem ...its replaced on the spot...(would you sue for a new cup) expect replacement?? be angry??
11-09-2009 @ 9:35PM
Vicki said...
@Kathy, shoudln't you be washing your hands between orders anyway? When I worked at a deli/convenience store, if you were behind the deli you were absolutely not allowed to touch the registers. Last I checked McDonalds employees go back and forth. Do you know how contaminated money is? You're probably transferring more germs by collecting my money which has been in circulation God knows where, coming in contact with God knows what, then touching my food. Last I checked, McDonald's employees don't wash their hands after ringing up each customer...don't you think this spreads more germs than handling a reusable coffee mug?
11-09-2009 @ 9:39PM
intheknow said...
Diane - most health regulations do not allow them to fill your own cup. They also aren't allowed to accept any food or drink back thru the drive-thru window once it is given out. Just an FYI.
11-09-2009 @ 10:21PM
Bri said...
I understand that people want to help the environment by using their own cups. But it is a health code violation to use someone elses cup because we don't know where it has been. While it's not likely that someone would give us a dirty cup, we just can't take the chance. What if someone did bring in a really dirty cup and the coffee pot ended up touching it. Or if the person was sick and the coffee pot touched the cup, you wouldn't want to drink out of that. I've worked for McDonalds for 5 years and as a manager for 3, so believe me we want to save money but not at the cost of getting in trouble with the health department.
11-10-2009 @ 12:47AM
David said...
Here's an Idea . . how about bringing back the animal fat in the oil so the fries taste like they used to . . .screw the bleeding hearts . . and how about some salt . . .If I wanted healthy I'd go to the salad bar. . .
11-10-2009 @ 12:58AM
weeshel6pack said...
How could you possibly wash your hands in between every customer?? Do understand that a busy store gets over 100 customers inside and over another 100 through drive thru during a busy hour? It would be impossible to do that. Also, it is not required. The person taking money is not making food. Therefore is only required to wash their hands once an hour.
And.... why are people taking the frozen meat home to see how much fat burns off? I believe that is stealing.
11-10-2009 @ 2:55AM
Conrad Uhric said...
Diane,
Your post Is Hard to Read with Your Random use Of Capitalization.
Haphazard As it is, It neither Clarifies nor helps To Emphasize What you are Trying To say.
As a matter Of Fact, I would Wager that People Actually stop Reading when They Think you are Trying To be too Artsy.
At least the ALL CAPS idiots are CoNsIsTeNt.
Why not be like us boring conformists and capitalize proper nouns and the first word of sentences ?
11-10-2009 @ 3:14AM
the truth said...
I stopped eating at McDonalds. I grew tired of the McRumbles in my stomach.
11-10-2009 @ 3:19AM
EAL said...
HURRY, HURRY, HURRY.....go get a grease burger...how about chemicals? Chicken mcnuggets are all chemicals....yummmmy. Hurry, hurry, hurry,,,,waste your money & get FAT at the same time.....,,yummmy.....
11-09-2009 @ 12:11PM
mike said...
it probably is they are so overpriced in the usa, a big mac meal in asia is $2.60, bet the sandwich is that much in usa.
Reply
11-09-2009 @ 9:06PM
hi said...
actually, just the sandwich in my town is 4$ and that's about average in the state, as far as I know.
11-09-2009 @ 9:30PM
ven said...
it probably is they are so overpriced in the usa, a big mac meal in asia is $2.60, bet the sandwich is that much in usa.
_______________________________
Its not that they are more, convert the price to dollars next time.... its not uncommon to see a $10 to $15 price for a big mac.... so before you say something you dont really know, how about you make sure the price you spit out is converted correctly...
11-09-2009 @ 12:18PM
Bfuzzy said...
It is no wonder sales in the USA are falling off. I live most of the year in China.... yea, China.... and no matter where I am in China, the Mc D's is better tasting than in the USA, and the service is quicker, and more polite. It is a shame that we as Americans are forced to eat a product that taste like the box it comes in. In fact, I think the box would taste better. But, only in the USA. That is OK, however KFC is the same way.
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11-09-2009 @ 12:47PM
Paul said...
Try the Black Angus Beef, you will be suprised how great it tastes, in China you may be eating dog meat, nothing goes to waste, MCD makes a great hamburger period, try it , you will like it.................................................
11-09-2009 @ 9:29PM
LabT3k said...
Forced to eat?!?!?! I don't recall anyone putting a gun to my head and making me eat that crap. If you want good tasting food, then McD's is the last place you should be eating. As far as sales slumping, maybe the American consumer has smartened up by making healthy meals at home instead of shoveling the byproduct of "real food production" down their throat.
Bfuzzy... how about some personal responsibility.
11-09-2009 @ 10:33PM
Wanda said...
The service at Mc Donald's is lousy,the counter people have horrible attitudes and the management isn't much better. Also,just try complaining to their "customer service" people. The company is a joke!
11-09-2009 @ 11:30PM
Joe said...
FYI: To be called an ANGUS Burger, it's only required to contain 10% Angus beef. They call it Angus and jack the price up! Have tried to get our local McD's to make a 'SuperMac' (2 of the 1/4 lb patties instead of the thin ones.) but get laughed at! Oh, as far as KFC goes, 98% of the food poisoning cases in our area originate at the KFC! You want a decent fast-food burger, try the Big Hardee, it's what the Hardee Huskee used to be!
11-09-2009 @ 12:32PM
John said...
Just like in ICELAND!!! lol, lol
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