On Aug. 8 the world's largest quick service restaurant operator reported that monthly turnover last month was down in all of its major markets.
This marked the worst showing for the Oak Brook, Illinois, USA-headquartered company in over nine years. The last time the global sales figure hit negative territory was in April of 2003. Since then, until July, sales advanced every month.
Comparable sales in the United States were relatively flat at -0.1%, as promotional activity did not offset the effects of the sluggish economy and last years launch of the Mango Pineapple smoothie.
Europe reported a 0.6% decline in comparable sales for July as strong results in the United Kingdom and Russia were more than offset by weaker performance in Germany and several Southern European markets amidst an increasingly difficult environment. Europes priority remains building guest traffic by featuring enhanced everyday value offerings alongside classic core menu items and appealing premium products.
Asia/Pacific, Middle East and Africa reported a comparable sales decrease of 1.5% for July. Positive results in Australia were more than offset by ongoing weakness in Japan and the negative impact from the shift in timing of Ramadan.
Systemwide sales decreased 3.2%, while increasing 2.3% in constant currencies. These figures include activity in Canada and Latin America, which was not detailed.
Second quarter net income declined by four percent, largely due to unfavorable currency exchange rates and higher costs. Revenue at units open at least a year rose 3.7% in that quarter, which was the weakest growth since the fourth quarter of 2009.
Despite the disappointing performance in July, CEO Don Thompson remains optimistic about the future. "Our leadership team has the experience to effectively manage through the challenging environment and build sales and market share," he said. "I am confident that we will continue to succeed as we execute against our three global priorities of optimizing the menu, modernizing the experience and broadening accessibility to our brand."
