Fast-Food Giant Is Doing Well Financially, Despite Flat Traffic
October 26, 2016: 12:00 AM EST
After four straight years of declining traffic, McDonald's Corp. is still trying to figure out how to lure more customers into its restaurants. The company nevertheless reported third quarter revenue and profit that beat estimates, thanks in part to increases – as much as 3.3 percent – in same-store sales in international markets, including the U.K. and Germany. But U.S. sales rose a mere 1.3 percent. Executives told a recent meeting of franchisees that building a sustainable business involves progress in three key areas: sales, guest counts and cash flow. "And today we are making uneven progress," according to a memo summarizing the meeting. The biggest disappointment is progress in growing guest counts.
Leslie Patton, "McDonald's Turnaround Fails to Get More Customers in Door", Bloomberg, October 26, 2016, © Bloomberg L.P.