Sales Fall at 'Broken' McDonald's

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McDonald's
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Not all is happy in McDonaldland.

McDonald's reported its first-quarter earnings Friday morning, and while profit rose slightly, comparable-store sales in the U.S. fell 1.2%. Things were even worse abroad, with comparable sales in Asia, the Middle East and Africa falling 3.3%.

In a statement accompanying the filing, McDonald's (MCD) CEO Don Thompson cited "global economic headwinds" and a "challenging eating-out environment."

The poor sales don't come as a complete shock. While the company reported improved profits in the fourth quarter of 2012, it also saw sales decline in key foreign markets and dealt with a drop in operating profit margins.

Though popular, the McRib barbecue sandwich can't solve all of the chain's problems. So in recent months, McDonald's has introduced Chicken McWraps in a bid to stimulate sagging sales. But franchisees recently complained that the sandwiches took too long to prepare.

And the company is also confronting the fact that customer-service issues are rampant at its franchises: According to one report, McDonald's officials told franchisees that "service is broken." QSR Magazine, an industry trade publication, found that the average wait time at the McDonald's drive-through window was a full minute slower than at rival Wendy's (WEN).

McDonald's stock dropped by more than 2 percentage points to $99.76 a share in pre-market trading.

Matt Brownell is the consumer and retail reporter for DailyFinance. You can reach him at Matt.Brownell@teamaol.com, and follow him on Twitter at @Brownellorama.


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172 Comments

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RIVERSIDEHIKERS

No more Senior Coffee have to deal with that awful Caribou Coffee in that mall

April 22 2013 at 1:16 AM Report abuse rate up rate down Reply
RIVERSIDEHIKERS

Wow they Closed the MCDONALD'S in the Eden Prairie Mall; in Eden prairie Minnesota. Who knows whats next to close?

April 22 2013 at 1:15 AM Report abuse rate up rate down Reply
1 reply to RIVERSIDEHIKERS's comment
apartyof.omg.nojobs

THERE ARE BLOCKS N BLOCKS OF CLOSED DOWN MINI MALLS ALL OVER AMERICA ,AS AMERICA IS CLOSED UNTILL THIS MUSLIM CLOWN IS REMOVED FROM OUR WHITE HOUSE IN HANDCUFFS. !

April 22 2013 at 4:02 AM Report abuse +1 rate up rate down Reply
bestbuyop

sales falling..because its heart disease, cancer causing, diabetes crap

April 21 2013 at 11:00 PM Report abuse +2 rate up rate down Reply
trusk2370

They have messed up my iced coffee for the last time. From now on, it is Dunkin' Donuts.

April 21 2013 at 9:10 PM Report abuse +1 rate up rate down Reply
YO REF

the drinks are not full to the top, the fries are never full to the top of the container. nothing at mcdonalds looks like the picture. i always have to check my order before i drive off. HEY MCDONALDS WORKERS LEARN TO SAY THANK YOU AND SHOW SOME PERSONALITY.

April 21 2013 at 9:01 PM Report abuse +1 rate up rate down Reply
YO REF

no matter what you order it basically all tastes the same. there are no exciteing tastes. the help rarely says thank you.

April 21 2013 at 8:57 PM Report abuse rate up rate down Reply
aztrukin

Two problems I consistently have with them. Broken English and 9 out of 10 times when I order a burger with no cheese, they put cheese on it and have to remake it. I rarely go there anymore.

April 21 2013 at 7:54 PM Report abuse +2 rate up rate down Reply
omgnojobs

THESE ARE THE ONLY JOBS THIS MUSLIM CLOWN CREATED IN THE LAST 5 PLUS YEARS NOW>>MICKY DEES~~DOLLAR STORE~~WALMART~~BUGER KING , N NOTHING BUT RECORD UNEMPLOYMENT N RECORD FORECLOSURES . ! 5 PLUS YEARS OF "DOOM N GLOOM"

April 21 2013 at 7:06 PM Report abuse +1 rate up rate down Reply
Fred

Their good thing going taste is really getting stale after all these years.

April 21 2013 at 6:31 PM Report abuse rate up rate down Reply
nnealj1

Hardly ever eat there, myself, so it wouldn't be catastrophic to me if the chain suffers a little...there's certainly healthier food to be found....

April 21 2013 at 4:56 PM Report abuse rate up rate down Reply