McDonald's Serves Up Worst Showing In Nine Years

August 8, 2012 3:03 PM EDT | By Anthony Smith
McDonald's (Photo: Wikimedia Commons)

It looks like the gold on the golden arches is starting to flake off.

In a report recently released, McDonald's Corp. claims that a key revenue figure well through in July, leading to the company's worst showing in a little more than nine years as patrons stopped coming through the restaurant's door amid an economy so rough, even dollar menu deals don't count as value. This comes after many years of outperforming its worthy fast food competitors with a winning rollout of popular new items, such as its oatmeal.

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This dilly of a fast food pickle also makes the case that competition is getting fiercer and fiercer for the world's biggest hamburger chain, and that they may have to pull out even more stops if they want to remain relevant.

The last time that global sales figures plummeted so poorly for McDonald's was in the April of 2003. Since then, that figure had grown every single month-- even through the bigger part of the recent recession.

"McDonald's may be underperforming the industry, which is not typical for them," analyzed Sara Senatore, who works at Bernstein. She made the case that the reason that others were doing strongly this time around came due to popular items such as Taco Bell's Doritos-flavored tacos. Thanks in no small part to that... delicacy, revenue at Taco Bell saw double-digit growth in the second quarter.

Others, such as Burger King, are also rolling out new items on their menu in an effort to diversify, stay relevant, and keep McDonald's on its toes.

This time last year, McDonald's rolled out the Mango Pineapple Smoothie, and saw growth due to that. It may be why analysts had expected a growth of around 2.8% in July of this year, and why a dip of .1 percent in America, .6 percent in Europe, and 1.5 percent in Asia and Africa is fairly harrowing.

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