The McDonald’s Corp’s sales missed the average expectation of analysts in October, McDonald’s said on Monday, and worries remain as it is continually in search of the best recipe so as to compete against famous food chains that sell fresh food.
Sales of newly-opened and at least 13-month operating McDonald’s restaurants dropped 0.5% as the largest fast food chain in the world continues to compete in the extremely tough industry, including the European political and economic turmoil, and the aftermath created by a supplier scandal in Asia.
Analysts expected an average of 2.2% drop based on Consensus Metrix, a research firm. Company sales dropped 1% within the United States, below the analysts estimate of 1.9%. McDonald’s sales have not improved since October last year.
Under CEO Don Thompson’s office since July 2012, the United States have been focused on fresh ingredients as well as customized sandwich toppings as it tried to become more competitive against other food chains like Subway and Chipotle.
Additionally, the company shares remained flat at 95.10 dollars in the early trading. The issue on market share drops in major marketplaces also continued.
Changes occurred as the company also struggled in competing with smaller rivals like Burger King, Chick-fil-A, and Wendy’s.
Sales of the restaurant were off 4.2% in the African regions Middle East, and Asia Pacific, while analysts estimated a 6.1% decline.
Chinese and Japanese diners shunned the restaurant after a news, exposing the workers’ mismanagement of meat in a China-based supplier of the restaurant. Thus, McDonald’s thrived to find new resources to improve its recipes.
Company sales in Europe dropped 0.7% because of closure in Russia, including the weakening of Russian ruble and euro. However, the European market edges out the US as the company’s top revenue marketplace.
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