MCDONALD’S REPORTED a smaller-than-expected rise in April sales at established restaurants across the globe, due largely to disappointing results in the United States, where advertisements for higher-priced food met resistance from penny-pinching consumers.
Sales at US restaurants open at least 13 months rose 3.3 per cent, while analysts expected a gain of about 5 per cent. Global same-restaurant sales were also up 3.3 per cent, missing the company’s forecast of a 4 per cent increase.
McDonald’s issued its global sales forecast on April 20th. The timing suggested US momentum flagged late in the month and that mainstream diners remain cautious about restaurant spending. “First and foremost, the consumer continues to want value,” said Lazard Capital Markets analyst Matthew DiFrisco.
Advertised “premium” chicken sandwiches and Angus burgers failed to meet sales targets, and it took longer than expected to roll out new blueberry banana nut oatmeal, Bernstein Research analyst Sara Senatore said in a client note.
McDonald’s same-restaurant sales in Europe rose 3.5 per cent. – (Reuters)
