McDonald’s Asia sales weaken

McDonald’s has seen its second quarter comparable sales in Asia Pacific, Middle East and Africa (APMEA) decline 0.3 per cent due to negative results in China, Australia and Japan.

Comparable sales in Europe were also down, due to poor performances in Germany and France.

Meanwhile, US comparable sales rose one per cent, gaining from new product introductions.

McDonald’s booked an earnings of $1.38 per share, up five per cent than a year earlier, but lower than analysts’ expectations of $1.40.

CEO Don Thompson said the company expects July comparable sales to be flat while the remainder of the year will remain challenged.

“While the informal eating out market remains challenging and economic uncertainty is pressuring consumer spending, we’re continuing to differentiate the McDonald’s experience by uniting consumer insights, innovation and execution,” said Thompson.

McDonald’s reconfirmed it will open its first Vietnam store in early 2014 in Ho Chi Minh City.

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