McDonald's Seeing Losses As Customers Opt For Healthier Meals

McDonald's is seeing less customers come in for breakfast, lunch and dinner even as the top fast-food restaurant announces new dollar menus and healthier meal choices, the Associated Press reported.

McDonald's expressed their disappointment over the lower sales in the fourth quarter which were caused by a decline in customer visits, according to the AP.

For the three months before Dec. 3, McDonald's earned $1.4 billion, surpassing Wall Street's prediction by a very small amount, the AP reported. Last year the fast-food chain earned $1.39 billion.

According to the report, the opening of new locations last year helped boost the revenue to $7.09 billion but it was short of the predicted $7.1 billion analysts previously predicted, the AP reported. The loss reflects a "long-term trend" as customer visits are down 1.9 percent around the world and 1.6 percent in the United States last year alone.

McDonald's reported global sales are also down by 0.1 percent for the quarter at established locations, and 1.4 percent in the U.S., according to the AP.

In January, McDonald's expects the figure to be "flat overall" and also said it expects for these issues to persist throughout the year, the AP reported.

Don Thompson, CEO of McDonald's, sat down with analysts to discuss how the chain can "win back customers" who are moving away towards healthier food choices, according to the AP.

Thompson suggested "speedier service, better value offerings and raising awareness around McDonald's as a kitchen and a restaurant that prepares high-quality food," the AP reported.

McDonald's is now beginning to face numerous challenges after beating it's competitors for years, the AP reported.

"We've lost some of our customer relevance," Thompson added in regards to the overall view of the company by American consumers, according to the AP.

As consumer eating habits move towards healthier choices, McDonald's has also tried adding new items, like egg whites and chicken wraps, to their menu to satisfy the demand, according to the AP. The company says they have received a "muted response" from customers.

Real Time Analytics