In the fast food fight for customer spending, one restaurant giant is struggling while rivals scoop up diners’ dollars.
Last week, McDonald’s reported its global comparable sales fell again, dropping 0.7 percent in the second quarter.
Meanwhile, comps at Burger King rose 6.7 percent in constant currency while Arby’s comps rose 7.6 percent during the second quarter. Several other large restaurants are also showing positive growth.
“It seems like the only big player doing negative numbers, period. They’re in a healthy market but they’re not participating in that market,” said David Palmer, analyst at RBC Capital Markets, in a phone interview.
This comes after several blockbuster years at the chain where it delivered a string of mid-single digit comp increases in the 2000s after a successful previous turnaround plan called “Plan to Win.”
In its domestic unit, McDonald’s comps have lagged its fast-food sandwich peers (a group that includes Arby’s, Burger King, Carl’s Jr., Jack in the Box, Wendy’s, Sonic and Subway) each month since October 2013, according to data that its investor-relations team provides to analysts using data from The NPD Group.
Source: CNBC