McDonald’s faced a plummet in quarter sale of the year and it’s been claimed that it expects plummet in April too. McDonald’s being one of the largest chains of restaurant proclaimed that its overall income was marginally at hike of $1.27 billion but it’s facing a steep fall in the global market by 1%. The company complained about the competitive environment and even added the severe winter of States and Europe, to its complaint list.
For the economical and careful spender the yummy brands such as Taco Bell, Kfc & Pizza Hut has added something new to the US menus while Burger King and Wendy’s also have renovated their offerings. McDonald’s is concerned with its ‘Dollar Menu’ for which the analyst complain it’s gulping the company’s marginal profit. It had its effect at the Wall Street trading board even, where its shares were plummeted by 2%, the sales and profit figures were lower than expected.
First three months, McDonald’s underlying sales dropped by 1.2% at the US with 3% down as the operating income, inspite of this they claimed that they outperformed the challenge and there is a hike in the market share. While in Europe the sells plummeted by 1.1% and the company blamed about the economic uncertainty going on in the region.
Don Thompson, president and CEO of McDonald’s proclaimed that “for the month of April, the global comparable sales are expected to be slightly negative” and also added that they are confident about the right plans in place to differentiate McDonald’s experience and strengthen their business momentum for a longer phase.