MCDONALD’S yesterday reported flat sales in July at established restaurants around the world, its worst performance in more than nine years and a sign that a weakening global economy is hitting discretionary spending among mainstream diners.
The results marked the first time since April 2003 that same-restaurant sales failed to rise. Just two weeks ago, McDonald’s predicted an increase in July same-restaurant sales, albeit by less than the 3.7 per cent gain reported in the second quarter. The flat result suggested that sales significantly decelerated in the days after McDonald’s issued guidance on 23 July. US sales slipped by 0.1 per cent last month, while European revenues dropped by 0.6 percent. July sales in the US and Europe were down 0.1 per cent and 0.6 per cent, respectively.
City A.M. Reporter