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Mcdonalds pins7/27/2023 ![]() Operating income fell 11%, reflecting weak sales and the effect of restructuring and restaurant closing charges. Global comparable sales decreased 2.3%, as traffic fell in all major segments.Ĭomparable sales in the United States declined on slipping traffic and sales. Foreign currency translation negatively affected reported revenues by $700 million. Revenues totaled $5,958.9 million, down 11% from $6,700.3 million in the comparable quarter. The charges included asset write-offs related to refranchising and the closing of approximately 350 unprofitable restaurants in Japan, China and the United States. ![]() “This weak top-line performance accounted for about half of the constant currency decline in operating income for the first quarter,” said Kevin Ozan, executive vice-president and chief financial officer, “The other half of the decline in operating income is attributable to the $195 million of strategic charges taken in the quarter to optimize the business.” ![]() Easterbrook stepped into the role three months ago, after Don Thompson stepped down.įor the first quarter ended March 31, McDonald’s had net income of $811.5 million, or 84c per share, down 33% from $1,204.8 million, or $1.21 per share, in the prior-year period. “With the team around me, we are challenging some of the conventional thinking on multiple fronts,” said Steve Easterbrook, president and chief executive officer, during an April 22 conference call with financial analysts. On May 4, the company plans to share in a conference call with the investment community initial details of yet another turnaround plan. More recently, McDonald’s began testing all-day breakfast and build-your-own burgers in select markets and is working to remove controversial ingredients from menu items, such as artificial colors, flavors and preservatives from grilled chicken. ![]() The chain has employed various marketing gimmicks, like allowing customers to pay for meals with hugs or high-fives. The fast-food chain in the past year has launched a number of initiatives to improve the business, including cutting menu items to simplify operations, adding menu items to drive demand, investing in digital technology, raising employee wages and closing underperforming restaurants. are still looking for the special sauce to spark growth in the United States, where comparable sales declined 2.6% in the recent quarter. Recently, McDonald's began testing all-day breakfast in select markets. ![]()
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