As McDonald’s Sales Slide, Chain Focuses on Value, Coffee
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McDonald’s Corp., the world’s largest restaurant chain, posted fourth-quarter profit that was little changed from a year earlier as U.S. same-store sales fell amid shaky consumer confidence and increased competition. But as its sales slide, the chain reaffirmed its marketing focus on coffee and evolving value messaging, along with product-rollout operational improvements.
For the full year, global same-store sales increased 0.2%. For the fourth quarter, global comparable sales decreased 0.1%, with a 1.4% decrease in the U.S. Third-quarter 2013 U.S. same-store sales rose 0.7%. Global same-store sales were up 0.9%. January sales are expected to be relatively flat.
McDonald’s had a challenging 2013 in the U.S. The chain saw increased competition on the value front, and reworked its 2013 marketing calendar to promote more value and dollar-menu marketing. In October, McDonald’s announced its Dollar Menu & More, which gave the chain the flexibility to add pricier items to its value menu — a move that came after chains like Wendy’s revamped its value offering and other competitors like Burger King were heavily promoting value offerings like a 2-for-$5 sandwich deal.
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