OAK BROOK, Ill. ― McDonald’s CEO Steve Easterbrook will unveil plans next month to boost profits, following six consecutive quarters of slumping sales.
For the period ended March 31, 2015, global comparable sales decreased by 2.3 per cent, reflecting negative guest traffic in all major segments; consolidated revenues decreased by 11 per cent; and consolidated operating income decreased by 28 per cent.
“McDonald’s management team is keenly focused on acting more quickly to better address today’s consumer needs, expectations and the competitive marketplace,” said Steve Easterbrook, president and CEO. “We are developing a turnaround plan to improve our performance and deliver enduring profitable growth. We look forward to sharing the initial details of this plan May 4.”
The company cited soft consumer sentiment, increasing competition, restructuring and closing charges, currency and inflation pressures in Russia, ongoing macro-economic headwinds across Europe, among other reasons for the sliding results.
“We are committed to positioning the company for long-term growth,” said Kevin Ozan, McDonald’s CFO. “We took a meaningful step in the first quarter with the decision to close underperforming restaurants that are not contributing to our profitability. While we continue our efforts to regain our business momentum and improve sales at our more than 36,000 restaurants around the world, our current performance reflects the ongoing pressures on the business. April global comparable sales are expected to be negative.”