McDonald’s had better look for new ways to beef up foreign sales if it wants to reverse the trends of the past month, according to a report issued February 8, 2013.
Global sales at the world’s largest fast- food restaurant declined 1.9% in January, according to a Fox Business report. Declines in Japan and Europe drove sales volume lower as consumers turned to other means for their daily sustenance. Expectations for international sales in January, 2013 were not very good and a loss was expected, but the decline was greater than analysts’ predictions.
Worldwide, January sales did edge higher in January, increasing 0.3% in spite of the poor foreign performance. The reason for improved sales overall was because American business increased. Same store sales here in the United States improved by 0.9%. Since the United States commands a disproportionately high number of McDonald’s restaurants, the 0.9% improvement was more than enough to compensate for the weak sales in other countries.
Among world regions, the Asia, Middle East, and African markets lagged the rest, with a 9.5% decline in same store sales. Japan and China were hit the hardest, with significant declines in store sales due to economic and other factors. American sales continue to perform at an acceptable level but are still below McDonald’s management targets for the year.
Wall Street doesn’t seem to mind the somewhat negative financial reports. The stock is trading over $95 per share, more than $5 higher than it was trading at the start of 2013 and more than $11 ahead of the 52- week low reached in mid- November, 2012.
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