McDonald’s sales dropped for the first time since 2003. The largest burger joint around the globe is reportedly struggling with sluggish sales both abroad and across the United States. Revenue at McDonald’s foreign locations open at least 13 months fell 1.8 percent during the month of October.
A challenging economy abroad and increased competition in the United States are reportedly among the reasons for decreased sales, according to the New York Daily News . Company statistics indicate that sales fell 2.2 percent at American and European restaurants in October. McDonald’s sales in the Middle East, African, and Asian markets reportedly fell 2.4 percent last month.
McDonald’s CEO Don Thompson noted the “pervasive challenges of today’s global marketplace” as the primary reason for the decline in orders. Wendy’s and Burger King have worked hard to revive their spot in the fast food marketplace. Gains by the two other major hamburger giants are reportedly cutting into McDonald’s sales, the Chicago Tribune notes. Taco Bell’s new Doritos Locos Tacos and Cantina Bell bowls have reportedly been become popular enough that the nation’s top hamburger restaurant has taken at least a small hit.
Chipotle Mexican Grill and Panera Bread Company offers “better-quality” food for a little more money, according to the New York Daily News . Those restaurants and healthy food alternative Subway are also becoming major contenders in the fast food realm.
In response to the dip in customers, McDonald’s is allegedly returning its focus to the Dollar Menu, which was introduced about 10 years ago. The Extra Value Menu concept was reportedly not as well received as anticipated. The restaurant chain has been forced to remove some items from the Dollar Menu over the years due to the increased costs of ingredients. Earlier this year, McDonald’s even removed its small fries from the Dollar Menu.
