McDonald's sales falling

[Hum]

America?s biggest burger chain revealed 3Q adjusted earnings of $1.51 per share after excluding 42-cent, one-time charges related to a foreign tax ruling, a China food supply issue, and temporary closures overseas. The results topped Wall Street expectations for profits of $1.37 per share.

For the quarter, McDonald?s saw a 5% drop in revenue, booking sales of $6.99 billion, which came in well below the $7.18 billion forecasted -- resulting in the fourth-straight quarter of sales declines for the burger giant. In the United States, the company said a 3.3% drop in comparable-store sales, along with negative guest counts resulting from sustained competition in the market weighed heavily on the top-line.

McDonald?s also saw a decline in revenue in Europe due to expansion and refranchising efforts, while a slowdown in the Asia/Pacific, Middle East and Africa region was attributed to a currency decrease for the quarter, weak comp-sales driven by supplier worries in China and Japan. Overall, the company saw a 3.3% drop in global same-store sales versus a 0.9% drop during the same period the year prior.

On the company?s earnings call Tuesday afternoon, McDonald?s CEO Don Thompson said he and the company were ?disappointed? by the fast-food chain?s performance which not only fell short of Wall Street?s expectations, but the company?s own forecast as well.

In an effort to prove to consumers they should stick with the brand, McDonald?s Thompson said he plans to continue to push his company?s outreach efforts, dubbed the "McDonald?s Experience of the Future." Increased focus on outreach began earlier this year, but intensified overseas shortly after resolution of the overseas food-safety scare, which aided in driving customers away from the brand.

Other aspects of the effort include the "Made for You" platform which offers customization to the brand's consumers, and last week?s U.S. debut of the ?Our Food, Your Questions? initiative, which is a way for customers to pose questions to the company about its products and receive an answer from McDonald?s. Issues addressed have included the so-called ?pink slime? issue surrounding the company?s Chicken McNuggets offering, and what goes into making a McRib sandwich.

Thompson addressed that issue outlining the company?s focus in the coming quarters on slimming down its menu offerings, engaging more heavily on social media outlets, and offering customers a diverse way to order through kiosks, and sourcing from local resources.

?They're asking to know what's in the food. They?re asking for integrity of the food,? Thompson said. ?There is an appeal, and you?ll see us in some categories looking to different products, possibly organics. We actually are doing it in certain markets. But I would say it's not the main driver, if you would. Were it the main driver, we wouldn't have clearly the number of customers that we have today visiting the McDonald's restaurants.

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[mstefanik]

The McDonald's "experience" is that their food tastes terrible, and it's even worse for your body. They're focusing on social media? They should be focusing on making something that's healthy and actually tastes like, well, food.

[Hum]

My main complaint is the order takers don't pay attention, or the sandwich people get it wrong half the time.

 

Many times I get cold food.

 

I have to check my food, and count my change in the rare times I give them anything but exact change.

 

Sometimes a manager is just plain rude.

[Shiranui]

My main complaint is the order takers don't pay attention, or the sandwich people get it wrong half the time.

 

Many times I get cold food.

 

I have to check my food, and count my change in the rare times I give them anything but exact change.

 

Sometimes a manager is just plain rude.

 

 

Send in this guy.