McDonald’s acknowledges its promos and new products weren’t hits

McDonald’s promotions and new products failed to provide hoped-for relief in the second quarter, leading to a 2 percent decline in domestic same-store sales, the company acknowledged today.

Near-term efforts to win back customers will include continued testing of all-day breakfast and ongoing simplification of the chain’s menu, the franchisor stressed.

Operating income for U.S. operations fell 6 percent.

CEO Steve Easterbrook noted that many of the corporate and cultural changes he foreshadowed earlier this year are now in place, and spoke about longer-range efforts to revive the brand.

“We are aligning our initiatives and resources behind longer-term strategic actions with the ability to drive meaningful improvements in our business,” he said in a statement.

McDonald’s has loosened the hands of franchisees and local management in hopes of sparking a turnaround. Units in many areas have responded by giving their menus local tweaks, from adding lobster rolls to putting heads on fountains for a local soda like Vernors. 

Today’s announcement was the first indication of how those efforts are working.  Easterbrook announced several months ago that McDonald’s will no longer reveal monthly comparable-sales results.


More from our partners