BLBG:McDonald’s July Sales Lag Estimates As U.S. Demand Drops
McDonald’s Corp. (MCD), the world’s largest restaurant chain, said sales at stores open at least 13 months were unchanged worldwide in July as the weak U.S. economy weighed on consumers.
Analysts projected an increase of 2.3 percent, the average of 14 estimates compiled by Consensus Metrix. Sales at domestic locations fell 0.1 percent, the Oak Brook, Illinois-based company said today in a statement. Analysts estimated a gain of 2.2 percent.
McDonald’s U.S. sales decline was the worst performance since January 2010 as Americans pulled back spending amid flagging consumer confidence. The company has tried to lure customers with an extra-value menu in the U.S. that includes items mostly priced between $1 and $2.
Sales and promotions failed to make up for the effects of the “sluggish” economy in the U.S., the company said in the statement.
McDonald’s fell 2.7 percent to $86.65 at 8:02 a.m. in New York. The shares had slumped 11 percent this year through the close of regular trading yesterday.
To contact the reporter on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net
To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net