McDonald's U.S. sales slip as value offers try to win diners back
International growth and higher adjusted earnings offset a small decline in the chain's home market.
McDonald's reported a 0.2% decline in U.S. comparable sales for the third quarter Wednesday, even as international growth helped lift global comparable sales by 1.5%.
The company said U.S. performance improved as the quarter progressed following its push on value. Management pointed to promotions and lower-priced offers as part of its effort to bring customers back.
International operated markets recorded comparable-sales growth of 1.4%, while international developmental licensed markets rose 4.2%. That left the global business growing despite the small decline in its largest market.
Adjusted earnings were $3.57 a share, up from $3.22 a year earlier. Reported diluted earnings were $3.51 a share. The adjusted figure excludes charges and should not be treated as identical to the reported result.
The quarter presents two different tests: whether the value strategy can restore sustained U.S. sales growth, and whether the broader business can keep earnings growing while consumers remain careful about spending. Management's improving-sales message is encouraging, but it does not erase the quarter's U.S. decline.
