McDonald’s Corporation (MCD) Sales Struggle On Asian and European Weaknesses – Burger King Worldwide Inc (BKW)

Burger King Worldwide Inc (NYSE:BKW) also added a molten fudge sundae and chicken nuggets with six dipping sauces to lure price-conscious customers. The company recently got involved in a ‘horse meat’ scandal in the UK, and so it severed connection with that particular supply unit. The one piece of positive news for the company is that this did not adversely impact its brand perception in the US. In fact Burger King has been gaining market share in the domestic market, as it is luring customers away from McDonald’s with the introduction of salads and snack wraps. While McDonald’s has slowed down a bit, Burger King experienced a 3.5% rise in same-store sales in the US and Canada in 2012 compared to a fall of 3.4% in 2011. It has been aggressively promoting its value menu just like McDonald’s, which recently conducted its Dollar Menu promotion.

The Bottom-line
McDonald’s has been the top fast food giant, outperforming all other quick service chains. However, the recent economic dullness and difficult business conditions, falling consumer confidence, and increased competition have led to a drop in figures. But McDonald’s is not the only player caught in such difficulty, the restaurant industry is hit by falling consumer traffic. For February, the company again issued a warning that sales are expected to fall 3% compared to prior year. Despite the challenges in the short run, Chief Executive Don Thompson is confident and believes that the ‘unwavering commitment to delivering an exceptional restaurant experience’ will help McDonald’s drive numbers in the future and enhance the long term perspective of the company.

The article McDonald’s Sales Struggle On Asian and European Weaknesses originally appeared on Fool.com and is written by Rajesh Marwah.

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