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McDonalds Stock Slides After Fast-Food Chain Reports 9th Consecutive Month Of Declining Global Sales
While the debate rages just what is causing the persistent weakness in McDonalds same store sales now stretching into its second year, there is no debate that whatever the reason may be, the once-iconic fast food chain is hurting. Because after staging a modest year end comeback and almost rising back to flat in December when it almost broke even, dropping "only" 0.1%, since then global sales have once again slowed down markedly, and have dropped by 1.8% and 1.7% in January and February respectively.
And while the biggest weakness continues to be in the Asia-Pac and Middle East region, where sales tumbled 8.8% from a year ago, it was the US where the trouble is certainly visible, and after rising by 0.4% for both of the preceding two months, MCD same store US sales in February tumbled by 4.0%, far below the -0.7% expected.
Whether the above is due to a shift in tastes, or the simplest explanation - that the US consumer can't even afford McDonalds is the right one - is applicable, stocks are not too excited and will rather wait until MCD announces a mega stock buyback before frontrunning the management's price indescriminate buying of its own shares, as has been the case with most other "successful" public equities in recent years.
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Damn Weather again (Global)
Perhaps the BLS can redefine the word "food" for them.
Perhaps quality might be the issue? I personally would prefer not to eat than to eat a McDonald's burger. In the US they do have plenty of quite good alternatives (Salads etc.) but overseas that is not the case as all the burger chains just sell burgers. In a head to head, IMHO, Burger King and Wendy's offer far better burgers.
Fast food burger......gotta be 5 Guys.
Fast food is not cheap or healthy.
It is an "emergency" stop, anymore.
McDonalds used to be fast and cheap. They are still fast, but no loner cheap. A meal for two is now $20 w/tax. I can go to the local diner and get dinner for two for $25, and it will be a nice lunch in a nicer setting.
It's a no-brainer.
Oh, there're brains.
This guy loves it...
https://www.youtube.com/watch?v=Aa_QSBEhJGI&feature=youtu.be&t=5m9s
got it covered ... https://creativemarket.com/alfonsodetomas/116287-Shit-burger/screenshots...
When we all chanted "yes we can".......we didn't realize the weather was going to be this bad.
The consensus among our top scientists was we'd never see snow again.....obviously those guys are idiots.
I think they should get used to a contracting share price.
When 8 old guys sitting in the corner drinking a pot of coffee and half a liter of creme each with their small 99 cent cups is their main business model there going to have big issues.
Yeah but my geo prof in the 80's got paid to believe that ohio would be like fla in 30 years, totally wrong, but still collects a tenured check.
A lifelong check for teaching 1 or 2 classes. No wonder higher education is such a ripoff these days...
I'm not lovin' it!
2 sausage McMuffins [with egg] for the price of 1 isn't helping [FREE HAM conundrum]... 2 Gefilte Filet-o-Fish for the price of 1 may have more success
<-- Oops, I forgot, you can only make a fried chicken or watermelon joke if you're a black talking to another black [rolls eyes]
I have eaten McDonald's "food" 3 times in the past five years or so.
Recently had to go there because of time constraints. Didn't get half way through and ended up giving a whole sandwich away to one of the techs. I can't believe people eat that shit, so I got up and got away from McDonald's.
0 for me.
Can anyone here make a burger at home that tastes like McDs? I wonder why that is?
Proprietary combination of pink slime and cardboard maybe?
Oh yeah - and fuck anyplace that calls their customers "users."
Last tried McD's early one morning on a company roadtrip,circa 2003, it was by the freeway entrance. Got 2 of their "breakfast burritos". they tasted like,.... well, they were kinda warm at least. I was able to finish one. Didn't feel good for an hour or two after. Never been back, and even then I should have known better.
Mojo Nixon explains it @3:37
https://www.youtube.com/watch?v=wW3XSqBkz20
Give me grossly over-processed ingredients made from the lowest common denominator and shoddy prep for 1000 Alex.
What is Booger Boy?
Is that like "special sauce"? (urban slang for spitting in the food)
With the dollar menu now dead maybe they need to try the two dollar menu.
King Dollar Policy Menu
Coming soon......the gold menu......they slip you a Whopper under the counter.....with cheese free of charge.
I for one think they've achieved a very tasty burger with their ratios of wood pulp to pink slime.
The wood pulp, aka microcrystalline cellulose is found mainly in the "milk shakes". It's the binder for the mix. If you are ever constipated the best thing to have is one of those high fiber colon bombs - vanilla, strawberry or chocolate will do the trick.
WOW!
Mikkee Deee shakes = intestinal lubricant
Great Find!
I stopped going because of 100% every time order phuc-upps.
Order just a Mcdouble & side salad w/ vinegrette. That's it.
You'll open the bag & find a mcChikkken & salad w/ french dressing.
Stupid stupid stupid.
I gave up.
If fast food is what you want, Arby's & Hardee's are doing it right. (at the moment)
They should have hung on to Chipotle. DOW would be @ 50k
The King [as in Burger king] took away huge market share by 1) providing great polite service and firing all the rude pimple people as well as 2) some great promos.
I figure in slime, cardboard, etc for all these FF places but a safe, polite relatively educated [they can add 96 cents + 8 cents] emplotyee goes a long way as BK has shown.
Here in Carolina its pronounced 'ninety six cent' and you cant get cents by eighten em, you either has em or you donts.
I cant decide which is worse here, the crackers that crawl out of their meth infested trailor parks to spend their EBT cards, or the damn yankees who left their shitholes ( that they created) up north and now want to recreate here.
but, but, but, i thot they were going organic.
Can I get extra silicone in my pink slime? How about a double dose of corn syrup in my corrosive liquid?
This is why mcdonalds and every fast food chain is seeing revenues decline...bad ingredients, bad employees and people are finally starting to get the "you are what you eat"
I blame it on a dying FRN
Naw , many factors, but high on my list is why would anybody want to go to a lower 25% of the curve hangout and be subject to someone's break from basic hygiene in one instance, and break from reality in other instances.
Folks on U Tube having psychotic separations from reality are their biggest issue.
No one with half a brain left wants to be around out of control people, much less customers.
Even at the drive thru.
Funny, that is the exact reason I haven't been in a Wallmart in years also.
Slaughterhouse renderings treated with ammonia and mixed with sawdust has never tasted so good. I just don't understand it.
I'm probably gonna get junked for making this comment, but I don't give a FF, I'm just adding perspective...
I buy chuck meat, & recently, top sirloin, & grind it myself using a Kitchen Aid for my ground beef... I'm sure many here do as well... Without getting into the discussion of where that beef actually came from, or what the cattle were fed, & injected with during their lifespans, let's focus on your comment...
The "Slaughterhouse Renderings"
When I first started doing it [mostly with the chuck at first], I would cut the beef into chunks & try to trim off as much fat as possible [eventually getting the chunks to probably only 10% fat]... But I would go ahead and grind up the fat part anyway, freeze it, and would offer it to some dog owners who perhaps wanted to use it as an additive in dog food... I didn't get many takers on that, so I said "What the Hell" I'll just render it down for tallow...
In that process, I was surprised to see [what looked like 100% fat] how much meat was actually left... It was substantial... I'm talking like 60-65%...
I'm not a chemist, but 'ammonia treatments' don't seem particularly brutal [as any chemical is likely solutioned away with water afterwards]. Sawdust [or wood pulp] isn't exactly harmful to anyone either...
Look ~ I'm not trying to get into a discussion of QUALITY here, but the main thing I'm trying to say is that you'd be surprised how much you get from slaughterhouse renderings...
As for me, besides getting the tallow, I end up essentially, 'precooking' the rendered ground beef from that, refreeze it, & end up using it in things like seasoned taco or burrito meat, bolognese sauce, chili, etc...
But But But, Upton Sinclair, such and such!
I don't give a flying fuck whether someone wants to buy processed crap or "certified organic"(herp derp), just don't put me on the hook for it in any way, be it subsidizing the purchasing, production, or healthcare provided for. If an ignoramus wants to suck down Quicktrip roller dogs every day of his working life, so be it. If he wants to buy locally sourced whatever, then that is fine as well. This is what some of us call liberty. So fucking what if MCD sells frankenfood bilge for a dollar. They produce a product for sale in the marketplace.
AFAIAC the more transgenes, the better, because there is no evidence that transgenic organisms consumed are unhealthy, or harmful.
Mostly what I was trying to suggest in the previous comment was, for the HOME GAMER [who wants to grind their own meat]... You'd be surprised how much "meat there is still on the bone" [or scraps, as the case may be]...
A totally different topic would be the PROCESS that McDonalds or anyone else uses which goes into one of their burgers...
For my money ~ I'd be willing to place a bet that the SALADS [in those establishments] are unhealthier than the burgers...
I've processed a few animals in my life. You can't ever get *everything* off the bones, or all the meat off the tendons. There is plenty of waste, but you can't justify the diminishing returns without some industrialized automation/process. On a scale that McDonald's operates, you can be damned certain they have the process down and tracked to within fractions of a cent.
I'm most used to processing deer, and there is precious little fat on these creatures. We keep the tenderloin and backstrap. Everything else gets turned into sausage (which beef fat is added to). The organs, carcass and gut pile are left for the coyotes. We process everything at deer camp, and don't take it to a butcher.
We bought two cows from a Muslim village outside of New Delhi, and smuggled the carcasses back into New Delhi. The muslims kept the hide, heads and hooves. Once we got the cows back to the house, we spent the next 6 hours butchering the carcesses and ended up with hundreds of pounds of hamburger meat (trust me, after eating water buffalo, the prospect of beef is simply mouthwatering). What an utter disappointment that was. The beef tasted like garbage. Real, literal garbage. Mark Twain was full of shit when he said that holy cows make the best hamburgers.
I think Twain was speaking metaphorically. But hey, cool story.
The golden arches shouls start accepting golden B's (bitcoins) as a last attempt at profitability. $1 surcharge ATM's not doing it for them.
McShit
Massive savings on petrol has allowed the massesto move up one level in fine dining.
Ronald is doing fine in Russia
McDonald’s Opening 50 Restaurants in Russia…..Celebrating 25 Years There
just ask the opposite question:
why would anyone expect a fast-food restaurant serving variations of the same 2 buns+fillings to be still standing at the same place after decades in business?
shouldn't the restaurant/food service business be inherently always shifting in tastes and trends just like fashion?
Several years ago...after decades of not eating McD's crappy burgers, I needed some food on a late night trip and bought a South Western grilled chicken McBristo sandwich. I got hooked on them. Big, reasonably priced, good tasting , grilled chicken--- not that compressed battered mcNugget shit.
They took it off the menu. I stopped going there.
MCD just needs to seriosuly ramp up stock buy backs. there, problem solved.
mc tornado, mc hurricane or mc frozen , come as you are, we're lovin in :) mouhahahahaha
HAHAHAHAHAH!!!!!!
Eat more veggies, bitchez!
Plant murderer!!!
their latest ad campaign tells you all you need to know about McD's troubles... quit pushing abstract concepts that fly in the face of normal convention and focus on making quality products that people want to buy, you fucking morons... poor people can't afford to eat your stuff anymore because they know they're getting very little return on that precious dollar they spent... rich people simply have other, better options to choose from...
these clowns are going to be eaten alive from both ends until there's nothing left in the middle at this rate... maybe that's a good thing, it's not like the world is required to have McD's around in order to keep spinning, companies have died before...
but will they be bailed out before they die??
I forsee a 'individual mandate' to purchase fastfood which would be a defacto bailout of Monsanto/MIC (medical industrial complex)........
I've always been of the idea that in a national emergency, MD would be nationalized to supply food to deperate people, using their own cheap SOPs and their efficient logistics and production facilities.
So, maybe no bailout, but subsidies really do keep the place afloat... until the govt decides they need them.
What? Wait a minute..... people need to eat?
Since we're talking about McDonalds, let's define our terms.
Hominids need carbon-based substances, yes.
I think the rise of dollar stores may also be attributed to the decline. A decade ago a dollar store was some place where you went to get disposable plastic crap for a birthday party.
Today a dollar store is a budget equivalent of Walmart. They sell food, care products, electronics, and they're flooded with customers. I see them spring up like payday loan shacks.
They have brand names that used to be carried in high end department stores and were associated with luxury. Now everything can be found in some quantity priced close to a dollar.
And yes, there is food there. Cheap food, crappy food, but in no way worse than what McDonalds offers and it actually costs dollar a piece. A single meal for $10 containing 3 items, or 10 items for the same price that will last about 2 days? The choice is clear.
Couldn't they boost revenue by collecting royalties from World Star and Youtube for all the fight videos in their dining halls?
Can you still call it a Dollar Menu when the only the item that is $1 is two disgusting Apple pies
Also I noticed their decline began when they started those fucking awful ghetto commercials 3-4 years ago.
Honestly, who eats "fast food?" I can hit the grocery store and cook 4 days worth of meals in under 2 hours. It isn't rocket science. If it wasn't grown or ate something that grew, it isn't "food."
Done.
The food sucks, don't they get it?
Hmm let's see, last night I could have spent about $8 to eat at McDonald's, or I could have gone to a very fancy Italian restaurant and had their $10 homemade pasta special. Decisions, decisions...
Actually, sales aren't that bad considering all the options for artery clogging chow springing up every day. The amount of shit 'muricans stuff into their holes must be on the rise, they remind me of those poor geese that get force fed grease so their livers fatten up to be served as "foie gras".
Saddle up to the trough fat asses, I enjoy watching you kill yourselves.
I find it interesting that nobody has mentioned Buffet and the whole ketchup thing.
...peculiar timing on the sales slide there.
Outside the US, most McDs actually charge for ketchup... no free packets dumped in take-out bags, and best yet, no homeless or destitute people using a cup of hot water from the rest room to make "tomato soup".
Getting expensive to eat McD's junk food.
Haven't they just hired myriads of new burger-flippers? How come if the revenues are down?
Nobody will pay high prices for garbage food. It's pretty simple. Either reverse the race to the bottom or go out of business.
Introduce an all organic, non-GMO, Big Mac, and then you might have some sales.
God I love you anti-gmo luddite morons.
Yes, people who want to eat organic are a bunch of ignorant schmucks. Keep trollin'.
What is "organic?"
This is where people get to espouse their love of big government. Big government decides what is "organic." "Organic" in chemistry means carbon is involved. "Organic" in food means dolphin-free feel goody mish mosh.
Organic Foods Loaded with E. Coli Kill More People Than Fukushima and BP Oil Spill CombinedNice strawmen. Organic farming, which is what we are talking about, is already defined. E. Coli kills people, yes. People choose not to wash their food, it's their fault. Eating raw is, and will always be, more risky.
And if you think Fukushima and the BP Oil spill are done killing people, I can only laugh.
He lives in the St. Louis area, home of Monsanto. He is probably an employee. Hence the GMO love fest .
Food that has not been poisoned by GMO.
So we are now redefining "poisoned?" Totally queer.
So, Mr. Ex-Mecham Park. Why not lable the GMO products if they are so safe? Let the public decide, liberty? Right?
Nonsense, organic has nothing to do with GMO. Usually, organic means expensive, and full of worms - or the producer has lied about not using poison.
I know conventional tomato farmers that ship truck-loads of conventionally grown tomatoes, to "organic" growers. These trucks move in the night, and the next day those tomatoes are sold at the market - as organic.
It is very hard to find real organic produce - without growing it yourself. 9/10 will give up after 3 years of feeding the bugs.
Truckers call McDonald's "THE PUKE"
https://www.youtube.com/watch?v=M4u6MzZ-e9A
Burgers are crap.
Buying puts on Dinty Moore
Because people finally figured out how oily, greasy, and fat-ass-making their crap product is.
Apparently, eating ONLY McDonalds would make your fat-ass much less fat... at 2000 kcal per day.
It's nice to see that they are realizing that their "higher end" chock-full-o-crap menu choices for the richer fat-ass is taking a measureable toll on business.
http://www.today.com/health/man-loses-56-pounds-after-eating-only-mcdona...
Well that guy ate 2000 cal per day and walked 45 minutes per day, that has nothing to do with McDonalds, it's just "eat less and exercise", he could have been eating anything as long as it was 2000 cal and he exercised.
Bada ba ba ba (I'm lovin it!)
Ha! I was thinking similarly;
Bada ba ba ba I'm shortin' it!
Hmmm, time for McDonalds to lead the market with burger bots. They can't cut costs any further on ingredients unless they go straight to a soy/cellulose burger.
So, where do you stand on Soylent Green™?
Send in McGruber before this hits the fan.
You don't suppose it has anything to do with the fact that their food SUCKS do ya?
20 years ago, McDonalds did not let me - a paying customer who was eating - use the restroom. They said too many non paying students were using them as a public rest stop. I showed the asshole where my table and grub-munching friends were, as still the asshole said no. *
Haven't been back to McD's since. I hope the whole fucking place goes belly up.
* Was so ticked I walked outside and pissed on the window. Fuck you, Ronald.
high Price junk!
i much it cost bring your family there!
The menu is too complicated.
The stores are often dirty with trash piling up.
No adult supervision of the staff = poor service and sloppy work.
The real issue (besides the actual food) is that there are too many MBAs workiing at the HQ and not enough former store managers.
Get back to you basics Ronald or lose money.
The Chinese didn't appreciate that McD contaminated meat.
odd.
Pink Slime? You think they REALLY stopped using it? Or maybe they just waited for the shit storm to die down and quietly resumed putting the crap in the meat. Some of us have learned not to trust or believe ANYTHING corporate weasels tell us.
Plastic in McNuggets?
"Shakes" without a trace of dairy product in them?
The bean counters ruined it for them and us. So we move on.
Every other chain copies their menu, so basically every burger joint is now a Mickey D. Let's see a chart of overall burger sales.
Why the decline of MCD?
Rocket science it is not.
In our town, there is a McDonalds, a JackinBox and a BurgerKing...all within about 350 yards of each other.
The BK has a good dollar menu selection.
The JinBox has a limited dollar menu but the food quality is best of the three.
And it's 2 tacos for 99 cents is a good deal.
MCDonalds? MCD trashed its dollar menu. Items formerly one dollar are now $1.50 or so.
So despite our MCD having an aging, and outside Tubes play area (too hot in summer and too wet in winter), the MCD prices are no longer competitive.
Not any more complicated than that.
Raise prices....lower income customers leave and the higher income customers find better places to eat for simular money.
Duh?
DK
All I know is that when I eat anything at McDonald's, my wife won't come anywhere near me because of the ruthless onslaught of putrid gas that eminates from my butt for two days.
Went short McD last week based on technical action. I'm lovin it.
I like McDo's food. I know it is gross but I frankly do not care. My stomach can take darn near anything and I am grateful for that. I dricnk unfiltered tap water and I do not believe in any "7 second rule" for when food falls on the ground either.
When my whelps were younger, the indoor gyms for kids were a blessing.
Fast food is one of the fiats I comfortably accept in our current state of affairs. I trust it just like I trust the roads. I am an anarcho-capitalist at heart and I do not need fancy-schmancy food to keep me happy. Part of McDick's business model --- as with all fast-food joints --- is consistency: they aim to make sure every burger is the same no matter where you buy it. Naturally, nothing is perfect but so far, I have NEVER heard of anybody getting food poisoning from a fast food chain.
Ultimately, folks need to control their supply chains as best as they can. Depending on fast food is certainly foolhardy. Farming your own or doing trade with a farmer is probably a wise step.
As far as GMO and factory farming is concerned, there is controlled opposition here that is diverting attention away from what I believe is the core problem: small farmers are being pushed out of the market by onerous regulations. I can not speak for every single agricultural jurisdiction on this planet but my own. I see big business leading the way for increased standardization and regulation which increased the over-head for small suppliers. As a capitalist, I reject standardization and regulation of any and all sorts except for that delivered through the free market --- as evidenced by fast food business models.
"..so far, I have NEVER heard of anybody getting food poisoning from a fast food chain."
You missed this one then:
1993 Jack in the Box E. coli outbreak
The 1993 Jack in the Box E. coli outbreak occurred when 732 people were infected with the Escherichia coli O157:H7 bacterium originating from undercooked beef patties in hamburgers.[1][2][3] The outbreak involved 73 Jack in the Box restaurants in California, Idaho, Washington and Nevada and has been described as "far and away the most infamous food poison outbreak in contemporary history."
http://en.wikipedia.org/wiki/1993_Jack_in_the_Box_E._coli_outbreak
I used to like McD's as a kid. Now I can not remember the last time I ate at a McD's. I recall usually crappy service, but not crappier than most other fast food joints. Once I noted that a crappy gas station restroom with feces on the floor was cleaner than the eating area.
Strange how an arguably iconic american brand can fall so far so fast.
Perhaps McD's has bigger problems than just menu, service, and cleanliness. I just tried to say to myself, I'll have lunch there and see how it is today – my initial reaction was pure revulsion.
the us market has been in the shitter for a good long time, boosted by China sales... where it was, for a brief time, seen as a "luxury". I shit you not people would dress up to go there. Those days are over. The shitty quality has been revealed, and the one plus: "clean bathrooms" is no longer there. There are more options for fast food now, which are better than McDs, taste better and are a better value.
With my local McD's now charging $11 for a burger,fries, and coffee. I am now eating a $2 can of Atlantic smoked herring, a packet of melba toast, can of pineapple, and a handful of Brazil nuts for lunch. I was amazed at how good I felt 2 days later.
I hope you've read up on Brazil nuts and radium? And if you eat a lot of herring, watch out for gout.
Suddenly a hamburger sounds like a good idea ...
it's still better than eating fucking McD's and paying $11 for the privilege...
Thanks for the heads up on the brazil nuts. I looked it up this afternoon.
Haven't had gout since I was a young teenager eating too many potato chips.
Actually you can also easily get selenium poisoining from brazil nuts. They are almost the only vegan source of selenium (which is why I know); two nuts contain a day's supply. But it is very easy to overdo.
Too much competition, the only virtue McD still has is ubiquity, they've lost their mojo.
The stock should be selling $10 lower right now, but in this market the dividend sets the share price, and even at current trends that need not fall for another year or two. But when the Fed nudges up interest rates, McD stock will notch down, maybe that $10 maybe more.
I think the company may turn around, try some more creative, specialized, and tasty outlets under a different name, and also clean up the old flagships, but it will take a couple of years.
The CEO and Board of Directors whouls have been replaced long ago. Same thig happened at jcp; misguided ceo and lazy BOD who just show up to slap each other on the back and collect their checks.
When will MCD stock be available on the dollar menu?
McFuck's...to big to fail.
I'd say increasing numbers of customers have been killed by the McPoison.
Let's face it: the wheels started coming off when they fired Ronald. Just sayin'.