McDonalds Logo (Photo : Reuters)
McDonalds Corporation is experiencing continued decline of its sales and is admitting that they need to adapt to the consumers' evolving tastes.
The fast food giant's January profit gains are now considered forfeited as its February sales declined more.
McDonalds' same-store sales in the United States dipped by almost 4 percent, which is considerably higher than February's 18 percent global-sales decline and the estimated 0.7 percent same-store sales drop by industry experts, according to Invest Correctly.
The company's sales decline follows after McDonalds' placed British national Steve Easterbrook as its new chief executive on March 1. The McDonalds CEO staged a rally at Las Vegas last week aimed at franchise holders in the U.S. Easterbrook presented his plans for a possible overhaul of McDonalds' marketing and food programs to adjust to the current trends.
Before that, McDonalds ran its "Pay With Lovin'" marketing program in February, which gives certain customers food free of charge. However, the promotion was not really received well by consumers and franchise holders of McDonalds.
McDonalds' same-store sales have slightly increased in Europe, however, as they surpassed the sales of the Africa, Middle East and Asia region by over four percent, NY Times reported.
The company has recently faced a problem with its supply chain in Asia after several food safety issues were raised, including the discovery of plastic items on some of its food products.
"Consumer needs and preferences have changed, and McDonald's current performance reflects the urgent need to evolve with today's consumers, reset strategic priorities and restore business momentum," McDonalds said in a statement.
