McDonald’s global sales continue to plummet

An influx of healthier fast food outlets in the US has seen consumers greeted with more choice than ever before, and as a result, the world’s largest chain of restaurants is suffering. McDonald’s sales at US outlets fell by 4.6 percent in November; more than double the expected decline, and global sales dropped 2.2 percent; marking their sixth consecutive monthly fall.

McDonald’s sales at US outlets fell by 4.6 percent in November; more than double the expected decline

Meanwhile, burrito chain Chipotle Mexican Grill reported a 20 percent rise in like-for-like sales for the three months up to September 30; its third consecutive quarter of double-digit increases. 2014 in particular has seen the fast food market inundated with smaller, more specialised outlets, coinciding with a shift in consumer habits towards restaurants that allow full customisation of dishes. McDonald’s like-for-like sales have not increased since October 2013, as it grapples to keep the attention of customers and maintain its market share.

Following a scandal involving meat suppliers in China, McDonald’s sales in the Asia Pacific, Middle East and Africa regions were down by four percent, and in Europe, they fell by two percent. Despite a strong performance in the UK, results were dragged down as the chain faces further opposition in Russia, where several of its Moscow outlets were closed in August as a result of alleged hygiene breaches. The fast food giant is no stranger to such allegations, while Chipotle, and many like it, prides itself on serving antibiotic and GMO-free meats and organic produce.

In New York, the company’s shares fell by 3.8 percent to $92.61. McDonald’s CEO Don Thompson said the chain would soon be moving to simplify its menu and give more control to local franchisers, and in what appears to be a direct response to its competitors, a customisation option – which allows patrons to build their own burgers – has been launched.