Boston, MA 09/10/2014 (wallstreetpr) – As per the reports, McDonald’s Corporation (NYSE:MCD) didn’t enjoy the previous month effectively. The U.S.-Russia cold war resulted in the closer of a lot of stores of MCD, which impacted its sales globally. The company recently announced that its same-store sales slipped by more than 14.5% in the month of August.
Fifth Month of Downfall:
Below expected performance in August was the fifth time when McDonald’s Corporation (NYSE:MCD) witnessed the downfall in monthly sales in since July 2012 when CEO Don Thompson took the charge. As soon as he joined as CEO, he warned that China Supplier scandal would affect MCD’s profits in coming time.
What MCD has to say:
The market spectrum is getting changed rapidly, and consumer are shifting from traditional MCD fast food to other options that are available in the market. McDonald’s Corporation (NYSE:MCD) is going through a tough time, experiencing internal missteps and heavy competition in the market. The management of MCD thinks that recent events, adverse sales performance in Japan and China and changing market spectrums will reduce the 2Q2014 profit by 15 to 20 cents per share.
Due to recent events, investors were not expecting much from company ahead of its monthly performance report; hence, it witnessed 0.7% decline in the stock market. CEO Thompson is not having a nice time out there, and he is feeling the heat of the moment too in this competitive market. He is under pressure to increase revenues of world’s biggest fast food chain in coming months.
Possible reason behind below expected performance:
According to a few market experts, slow service and bloated menus are playing a significant role in company’s below expected sales. Rivals like Burger King Worldwide Inc (NYSE:BKW) and The Wendy’s Co (NASDAQ:WEN) are getting an edge over McDonald’s Corporation (NYSE:MCD) in terms of servicing part that is a major concern for the management. It needs to be sorted out as soon as possible.
