McDonald's lower turnover causes profit crash

McDonald's lower turnover causes profit crash

McDonald's has been unable to stop the negative spiral it is in: like-for-like turnover dropped 2.3 % in its first quarter of 2015 and operational profit even plummeted 28 %.

Worldwide drop

Analysts had expected a 1.8 % turnover drop, so the actual result is much worse than anticipated. Despite a huge number of campaigns, the company failed to turn things around in its home territory, the United States, where like-for-like turnover dropped 2.6 %.

 

The company's European performance was not much better, with particularly France and Russia as major disappointments. Asian and Middle Eastern like-for-like turnover even dropped 8.3 %, as food safety issues with McDonald's Japan and China have tainted its local image.

 

On a positive note, McDonald's has vowed to fight deforestation issues in its supply chain. The World Wide Fund for Nature believes the new support is mostly symbolic as it could encourage other fast food companies to do the same. McDonald's will now have to look for solutions for its 3,100 worldwide suppliers.

Tags: