“WANTS SOME FRIES WITH THAT RECOVERY?”
By FITSNEWS || McDonald’s saw its global sales decline 2.2 percent in November – led by an unexpectedly sharp 4.6 percent drop in the United States. The Illinois-based company – the second largest employer in the world – blamed the poor results on “strong competitive activity.”
McDonald’s also warned its fourth quarter earnings would decline by $0.07-0.09 per share due to “strengthening of the U.S. dollar against nearly all foreign currencies.”
Analysts had expected McDonald’s U.S. sales to drop only 1.9 percent – meaning the actual November drop-off was twice as bad as anyone anticipated. If trends hold, McDonald’s will experience negative global growth for the first time since 2002.
McDonald’s has more than 35,000 locations around the world – including 14,000 in the United States. The company’s stock price was down $2.81 – or roughly 3 percent – prior to the opening of the market Monday in response to the disappointing data.