McDonald’s Turnaround Effort Stumbles as All-Day Breakfast Seems to Lose Popularity
Popularity of McDonald's all-day breakfast menu seems to be losing its shine as customer enthusiasm dries down. The same goes for McDonalds McPick 2 promotions and that's certainly not good for business.
In the latest quarter, sales at the fast-food restaurant chain, which saw some rolling gains after its October all-day breakfast launch, significantly slowed down.
However, McDonald's posted straight quarterly gains for the fourth time, for its fiscal Q2 along with positive sales numbers at the established restaurants which have been open for one or more years.
On Tuesday, McDonald's announced its second-quarter earnings report with four percent drop in revenue at $6.26billion. The burger chains turnaround efforts seem to be fizzling out at home as well as abroad and that is disappointing investors.
Steve Easterbrook, McDonald's CEO says, global uncertainty has a big part to play and is dampening consumers' appetites. Lot has happened in the latest quarter, including UK's decision to exit from the European Union and an election campaign in the United States which is growing intensely hostile.
Mr. Easterbrook said, "Clearly, we plan to grow our business. But at the same time, we're not trying to do that on a quarter-to-quarter-to-quarter basis."
The company expected the demand for all-day breakfast to settle down gradually and the enthusiasm to slowly slip from its initial boost. However, McDonald's plans to give it another lift with more menus included in the fall.