Investors were disappointed. The shares fell 1% in midday trading … even though some were supporting the numbers would be even worse.
But make no mistake. McDonald’s desperately needs a change.
The company said its total sales in the fourth quarter fell 7%. And comparable sales, a key health indicator in the restaurant industry, fell nearly 1%. Earnings fell 21%.
Throughout the year, sales fell 2% and earnings decreased 15%.
Will McDonald’s is too fried? McDonald’s shares have fallen by 8% during the last three years … a period of time when the overall market and rival fast food like Wendy’s and Yum !, brands have increased.
The company has been trying to focus more on healthier to try to renew food sales worldwide. While the struggles in their home market have been widely publicized, McDonald’s sales have also declined in Europe and Asia.
Last summer, a problem with contaminated meat supplier in Asia affected sales in China and Japan in the fourth quarter.
McDonald’s said in its earnings this year plans to further simplify its menu and also try to accommodate more ‘tastes and preferences of local customers. ”
McDonalds is also one of the most important companies in which workers who have participated in protests across the country to ask for a raise in the minimum wage focus.
McDonald’s clearly needs a new special sauce to convince consumers and investors why they should believe again in the company.