McDonald’s global sales slip, plans turnaround
Despite positive performance in the UK, global comparable sales dropped 2.3% from last year.
In a conference call, Steve Easterbrook, McDonald’s CEO, said, “The U.K. continues its strong track record of positive performance with first quarter comparable sales representing the market's 36 consecutive quarter of growth.
“These results reflect the market's diligent execution of its customer-centric plans that span multiple initiatives, including food choice and food quality, marketing and promotions and enhancements to the service experience, such as expanding drive-through capacity during peak periods and building the overnight experience.”
Diluted earnings per share for the first quarter dropped 31% from a year earlier, to 84 US cents. Revenues also fell 11% (1% in constant currencies) from a year earlier, to $US5.96 billion ($7.7 billion).
Easterbrook pledged that ‘meaningful’ change was to its stores aiming to bring the company back up.
"Where we need to fix the fundamentals, we need to act now. And where we need to make an impact, I'm not looking for incremental steps. We intend to make meaningful impact with customers and how they perceive our brand and our food," he said.
“We will try new things, move fast with what works, and even faster from what doesn't,” Easterbrook said.
"My overall vision is for McDonald's to be seen as a modern progressive burger company delivering a contemporary customer experience. Modern is about getting the brand to where we need to be today, and progressive is about doing what it takes to be the McDonald's our customers will expect tomorrow."
