Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

McDonald’s Corporation (MCD)’s Sales Data Put a Question Mark on Company’s Future Growth

McDonald’s Corporation (NYSE:MCD) came up with its July comparable sales numbers today that were way below Street expectations. Though analysts were already expecting a low number from China due to safety concerns, the whole APMEA (Asia/Pacific, Middle East and Africa)  region was down by 7.3%. The comparable sales for U.S. declined by 3.2%, while global sales were down 2.5%.

McDonald's Corporation (NYSE:MCD)

R.J. Hottovy, senior analyst at Morningstar broke down worse than expected sales numbers of McDonald’s Corporation (NYSE:MCD) and how this will impact the company and its CEO in the future, on CNBC.

“I think it was a lot worse, really on two fronts. We knew the news from China and the APMEA region was going to be bad, but to see a negative 7.3, really gave us the first clear picture of how serious this issue is. That’s probably going to put the company in negative double digit comp territory over the next couple of quarters because this only kicked down on the last 10 days of the month. So, that becomes a concern not only on the top-line, but also on the margin-line as well, given that they have a heavier percentage of company-owned store locations there […],” Hottovy said.

Hottovy feels that the future prospects for McDonald’s Corporation (NYSE:MCD) is not looking good even in the U.S. He believes that a lot of initiatives taken by McDonald’s Corporation (NYSE:MCD) hasn’t gained traction and the company is struggling to re-connect with its customer base.

“I think you have got a situation, where the higher end, and more affluent and even the millennial customer shifted away to the fast casual players like Chipotle, Panera, Five Guys and those players like that. Whereas the low end consumer is finding alternative channels for food,” Hottovy added.

Hottovy also believes that  McDonald’s Corporation (NYSE:MCD)’s CEO has taken a lot of initiatives, which haven’t panned out in a positive manner and can become a risk for the CEO himself.

 Disclosure: None

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!