By Samantha Sharf
As its workers went on strike last week fast food giant McDonald's MCD -1.16% was preparing to give its investors disappointing news.
McDonald’s same store sales in the United States were down a surprising .8% last month. Wall Street’sconsensus estimate was for a .3% increase. To make matters worse Asia, the Middle East and Africa lost 2.3%.
The only bright spot turned out to beEurope which had 1.9% growth. The modest increase in the slowly recovering continent, however, was not enough to totally offset the losses elsewhere. McDonald’s global same store sales grew just .5% last month on a .6% estimate.
This is the second month in a row of disappointing results from the fast food giant. Last month the company blamed the slow growth on competition and prior year strength.
This time McDonald’s notes that domestic same store sales were down .8% during the same period last year. While breakfast and chicken menu sales kept the chain from a another decline, a flat industry and competition led to slow growth.
In Europe the company reported positive results in the United Kingdom, France and Russia, but a loss in Germany. “Amid a tepid informal eating out market,” said a statement, “Europe delivered positive results by elevating the customer experience with appealing premium, core and value menu options, compelling promotional food events and continued focus on key dayparts.” McDonald’s also wrote that losses in Japan were the primary driver of the decline across the rest of the world.
McDonald’s shares opened down .6% at $96.20.
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