Is Dollar Menu distance to blame for McDonald’s slump?

For all the talk of the U.S. job market having recovered to pre-recession levels, and improvements in consumer spending, one fact continues to bedevil restaurants like McDonald’s and discount retail chains: low-income Americans can’t, or don’t want to, spend on the pricier offerings those companies are trotting out.

McDonald’s reported a worse-than-expected 1% drop in sales at U.S. restaurants open at least 13 months — its seventh month without growth — and blamed “ongoing broad-based challenges.” (Wall Street analysts had been expecting a 0.1% increase, according to Consensus Matrix.)

One of those challenges is that customers have been coming in less often after McDonald’s pared the selection of items on its Dollar Menu last year.

Read the Full Article


More from our partners