McDonald's managed to maintain its first-quarter profit, even as the world's largest hamburger chain failed to boost sales of the dollar menu.
The company said Friday that an important sales during the measurement, and warned that it is expected to dip again in April, fell 1 percent.
This marks the first-quarter sales at restaurants open at least 13 months fell by ten years, and stressed that the company has been facing trouble.
McDonald's Burger King (Burger King) and Wendy strengthen their marketing in the past year or so has been to respond actively to attract the dollar menu and other value-added offers to hold customers, in an industry where imitation is rampant.
The strategy has been cause for concern, analysts fear it could eat into profit margins. It also angered some McDonald's franchisees in the United States operating a restaurant in the vast majority of
However, in a conference call with analysts Friday, McDonald's executives insist that provide cheaper price, in the current environment is necessary. The food and beverage industry is barely growing, they say, McDonald's needs, in order to steal customers from rivals to grow.
Compete for market share has become the key to long-term health business, we are willing to sacrifice profit margins, "said Peter Benson, the company's Chief Financial Officer.
Although the decline in profit margins in the first quarter, McDonald's pointed out it off of the market share in many parts of the world, including the United States
But there are signs that such a transaction is not sitting well with independent franchise restaurants.
Financial services company Janney Capital Markets The survey found that sampling of 25 franchisees to operate 180 McDonald's restaurants Average rating below its historical relationship with the company announced this week. Gianni said some complain about too many coupons and discounts.
At the same time, McDonald's emphasis on the dollar menu, since last year, has been the ripple effect of industry. Burger King (Burger King) said recently that it is to re-equip their strategies and to attract trading primary whopper of $ 1.29, and so on. Wendy renovation of its value menu, said last year, it hopes to provide customers with more choices.
Key value menu and offers long-term traditional staple food in the fast food industry, is an attempt by the same chain development and adaptation to changing tastes. With more and more people flock to Chipotle and Panera McDonald's place, such as trying to freshen up their products and improve the image of its food. In addition to chicken McWraps, example, the company launched a version of its eggs and egg white muffin next week.
Such projects are generally more expensive, Chief Executive Officer Don Thompson pointed out, they can help to improve profit margins in the coming quarters.
For the three months ended March 31, 2010, global sales were down 1.2% decline in sales figures in the United States fell 1.1%, the company's sales in Europe, the largest in the region.
Regions, including Asia, the Middle East and Africa region fell 3.3%, reflecting the weakness in Japan, in China and a decrease of 4.6%. The company blamed the decline to some extent, which is owned by Yum KFC chicken supply the aftermath of the recent panic
Headquartered in Oak Brook, Illinois, McDonald's in the world with more than 34,000 locations in the United States approximately 14,000
Revenue for the quarter was $ 1.27 billion, or $ 1.26 per share. 1.267 billion U.S. dollars, or $ 1.23 per share, compared to a year ago.
Income edged up 1% to $ 6.6 billion.
Analysts expect a profit of $ 1.26 per share, $ 6.59 billion in revenue, according to FactSet.
The shares fell $ 1.99, or 2%, to close at $ 99.92 on Friday.
 



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