The biggest restaurant chain in the world – McDonalds Corp. revealed that its sales at stores open at least 13 months fell by 3.7% in August, as the decline in the companys home market continued for the fourth consecutive month.
Analysts had expected a 3.1% sales decline. The company also said same-store sales in the US fell by 2.8%, compared with a 2% drop forecasts.
“During August, McDonald’s global business faced headwinds that impacted sales performance,” Chief Executive Officer Mr. Don Thompson said in the companys statement. “We are diligently working to effectively navigate the current market conditions to regain momentum.”
The global sales decline comes at a moment when the company is facing a variety of difficulties around the globe. McDonalds has been recently trying to restore customer trust in China, where the company currently owns more than 2 000 stores. The customers confidence in the US-based restaurant chain has been seriously shaken after some problems with its meat supplier Shanghai Husi Food Co. in late July. The scandal began after authorities accused the supplier of intentionally selling expired meat to restaurant chains such as McDonalds.
In Russia, on the other hand, some of the companys restaurants were forced to close temporarily after Russias food safety watchdog started mass unscheduled inspections. At the same time, hundreds of employees of McDonalds have been recently participating in nationwide protests in the US in an attempt to force the worlds largest fast-food restaurant chain to boost wages to $15 per hour.
McDonalds Corp. was 0.25% down at $92.27 per share by 13:32 GMT today, marking a one-year change of -3.96%. As of the previous close, the company is valued at $90.83 billion. According to CNN Money, the 18 analysts offering 12-month price forecasts for McDonalds Corp. have a median target of $99.00, with a high estimate of $110.00 and a low estimate of $92.00. The median estimate represents a +7.03% increase from the last price of $92.50.
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