McDonald's feels heat from fall in customers

McDonald's yesterday said its profit and sales declined as the world’s biggest hamburger chain saw customer traffic fall around the world.

The company said sales fell 3.3 percent globally and in the US during the third quarter. In the region encompassing Asia, where a major McDonald’s supplier was shown on TV repackaging expired beef, the figure fell 9.9 percent.

“By all measures our performance fell short of our expectations,” CEO Don Thompson said. The company, which has more than 35,000 locations around the world, said it expects its challenges will continue into the current quarter, with global sales to be down for October as well.

In the US, McDonald’s Corp is fighting to hold onto customers amid intensifying competition and shifting tastes toward food people consider more wholesome. Chipotle, which touts the quality of its ingredients, said on Monday that its sales rose 19.8 percent at established locations. Steve Ells, co-CEO of the Mexican food chain, said the results show people are realizing “there are better alternatives to traditional fast food” and that he expects the trend to continue.

McDonald’s, meanwhile, has been working on improving its image. In addition to focusing on a simplified menu, the company said its revamped marketing in the US will stress its food quality.

In southern California, McDonald’s is also testing a “Build Your Own Burger” concept that lets people pick the bun, beef patty and toppings they want by tapping a touchscreen. The test is intended to address the popularity of places that let people customize their meal.