McDonald's US franchisees say September comps were off 3.6 percent
SEAFOODNEWS.COM [Nation's Restaurant News] by Jonathan Maze - October 20, 2014 -
McDonald’s Corp. sales have been weakening throughout the summer, and that didn’t change in September, according to Janney Capital Markets analyst Mark Kalinowski’s survey of the burger giant’s franchisees.
In the survey, published Friday, operators said their same-store sales fell 3.6 percent. That would be the worst monthly performance for the venerable quick-service chain since December’s weather-weakened 3.8-percent decline.
In addition to the sales weakness, franchisees are also facing increased costs for labor, thanks to minimum wage hikes and public pressure to raise wages. Food costs are high as well. The prices for beef and cheese are stratospheric, and both of those commodities are heavily used within McDonald’s restaurants.
Add it up and you get mounting franchisee unrest. When asked for their six-month outlook, 28 of the 32 franchisees rated it “fair” or “poor,” with the others split between “very good” and “good.” None of the operators called the outlook “excellent.”
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