Even the best fall down sometimes.
McDonald’s shares finished in the red zone on Monday as the world’s biggest fast-food chain reported a disappointing US restaurant sales for the final months of 2016.
First Time in a Long Time
Shares of the McDonald’s Corp. (MCD) in the stock market finished off 0.5% lower to close at $121.60 as the fast food chain failed to hurdle hefty competition and a sluggish restaurant industry in the final quarter of the previous year.
For the moths covering October to December of 2016, the novelty of all-day breakfast reported a 1.3% decline in its sales on established restaurants in US, the first drop in quarterly sales in six quarters, narrowly escaping the consensus analysts’ forecast of 1.4% decline.
Meanwhile, the burger giant’s revenue in the fourth quarter dived nearly 5% to %6.03 billion, as sales from the all-day breakfast, which was initially introduced in late October 2015, failed to meet the firm’s target to counter lagging sales.
The all-day breakfast was originally based on the idea of Chief Executive Officer Steve Easterbrook as part of the turnaround plan to drive steady profit but the recent data on its sales report proved that the strategy was not delivering.
However, the firm still logged impressive figures in terms of international sales as its overall same-store sales surged up 2.7%, as a result of key improvements in its overseas operations.
Meanwhile, the fall in McDonald’s shares on Monday weighed in on the Dow Jones industrial average, which saw the index losing 27.40 points, or 0.1%, to close at 19 799.98.