McDonald’s reports 0.3% decline in global sales for May

McDonald’s reported decline in its same-store sales for the month of May. On Monday, the Oak Brook, Illinois-based company, said that its global comparable sales decreased 0.3% in the period. According to Consensus Metrix, analysts predicted a 0.9% drop on average.

However, sales in Europe were considerably good and they compensated the company’s sluggish growth in both Asia and its home country. European comparable sales rose 2.3 % while the analysts had projected a 0.65% gain.

Asit Sharma, an analyst at the Motley Fool said that although gain in Europe is encouraging, investors are still waiting for the company’s performance in the US to improve.

He said, “Today’s numbers don’t show a significant change in McDonald’s near-term performance. Investors are still waiting to see if the company can fix its structural problems and produce meaningful revenue increases in the US”.

McDonald’s CEO, Steve Easterbrook, who took the position in March, has vowed to transform the restaurant chain into a modern, progressive burger company. Last month, a turnaround plan was announced by him that includes re-organizing management, cutting costs and returning cash to shareholders.

Easterbrook said that turning around the US business is a burning priority for the company. The company is working to enhance the customer experience with exciting limited-time menu and value options in the US.

It will test opportunities to expand convenience, personalization and daypart availability to modernize the business.

Easterbrook’s strategy includes testing a slimmed-down menu for drive-thru customers as the company struggled with a bloated menu service times, confusing customers and slowing down the service.