McDonald’s sees sales fall

McDonald’s, the world’s largest restaurant chain, said sales at stores open at least 13 months fell 1.8% in October, the first monthly decline in nine years, as US customer traffic decreased.

Analysts projected a drop of 1.1%, the average of 14 estimates compiled by Consensus Metrix. Sales at US locations slid 2.2% last month, McDonald’s said in a statement. Analysts also estimated a decline of 1.1% for stores there.

Chief executive Don Thompson, who took the helm in July, said last month that the company will advertise its Dollar Menu more to draw value-conscious Americans. McDonald’s, which gets about one-third of its revenue from US stores, will also market new food items in 2013, he said.

McDonald’s global monthly same-store sales last declined in Apr 2003.

Stores in the US saw “modest consumer demand and heightened competitive activity” in October, McDonald’s said.

McDonald’s comparable-store sales decreased 2.2% in Europe and 2.4% in the company’s Asia Pacific, Africa, and the Middle East region. Analysts estimated drops of 0.7% and 3%, respectively, according to Consensus Metrix.

Same-store sales declined in China, where McDonald’s plans to have 2,000 stores by the end of next year, the company said in the statement. Sales fell 7.2% in Japan last month.