McDonald’s April Sales Top Estimates as US Decline Slows
Published on May 8 2015 3:19 PM in Food
McDonald’s reported April sales that topped analysts’ projections after declines in the US slowed, giving Chief Executive Officer Steve Easterbrook some momentum to work with as he implements his turnaround plan.
Global same-store sales fell 0.6 per cent, the company said in a statement Friday. Analysts estimated a 1.8 per cent drop, according to Consensus Metrix.
Sales at US stores open at least 13 months fell 2.3 per cent, matching analysts’ projections and improving from a 3.9 per cent slide in March.
Easterbrook, who took the helm in March, unveiled a plan this week to boost McDonald’s sales and profitability.
The changes include a leadership shuffle, cost cuts and a push to sell more company-owned locations to franchisees. Even before he took over, the restaurant chain was working to repair its US business, which has been hurt by new rivals and a complicated menu. McDonald’s recently began selling a new sirloin burger and testing all-day breakfast to lure more diners.
“This is a nice improvement from last month,” said Will Slabaugh, an analyst at Stephens Inc. “They’re moving in the right direction, and there’s a very tangible plan in place that people can grab hold of.”
Same-store sales gained one per cent in Europe and fell 3.8 per cent in the company’s Asia Pacific, Middle East and Africa region, McDonald’s said in Friday’s statement. Analysts estimated a 0.2 per cent increase for Europe and a 5.8 per cent drop for APMEA.
News by Bloomberg, edited by ESM