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McDonald's sees global sales fall

19 April 2013 by
McDonald's sees global sales fall

Fast-food chain McDonald's has seen a drop in first quarter sales and predicted that sales would fall in April too.

The company, which is the world's largest restaurant chain, saw underlying global sales fall by 1% in the first three months of the year, even though net income was slightly higher, at $1.27b (£830,000).

Meanwhile, sales fell by 1.1% in Europe.

McDonald's blamed the performance on a harsh winter in the US and Europe, as well as a challenging trading environment where fast food brands in the US were all trying to appeal to cash-strapped consumers. Fierce competition with the likes of Yum Brands, Burger King and Wendy's has eroded margins. In Europe, it also blamed the "ongoing economic uncertainty".

"For the month of April, global comparable sales are expected to be slightly negative," said McDonald's president and chief executive officer Don Thompson.

"We are confident that we have the right plans in place to differentiate the McDonald's experience and strengthen our business momentum for the long term."

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