McDonald’s Sales Dip Nearly 2% in January

Global sales were down 0.9% in the fourth quarter of 2014 and 1% for all of 2014. Revenues were down 2% for the year and 7% for the fourth quarter. McDonald’s poor performance has cost CEO Don Thompson his job and new CEO Steve Easterbrook, who officially takes over on March 1, has his work cut out for him.

In the report on January sales, McDonald’s (not Thompson or Easterbrook) says:

McDonald’s begins 2015 on a path to regain business momentum globally. The Company’s charge over the coming year is to accelerate the pace of change and elevate the overall McDonald’s experience in the eyes of its customers. While the Company’s January performance reflects current business challenges, McDonald’s structure and competitive strengths will provide the capability to change the trajectory of the business over the long term.

ALSO READ: The Bullish and Bearish Case for McDonald’s in 2015

The company’s problems in Asia are directly related to tainted food issues that seem to pop up frequently. In the United States, the brand has lost its appeal to younger consumers who have turned increasingly to fast casual dining spots like Chipotle Mexican Grill. In Europe the company’s difficulties in Russia have offset better sales in both the United Kingdom and Germany.

Total sales at all stores actually rose 0.3% on a constant currency basis in January, but slipped 7.9%, as reported due to a stronger U.S. dollar. Analysts were expecting global same-store sales to fall 1.2% and to rise 0.3% in the United States.

In premarket trading Monday, McDonald’s shares traded down about 1% to $93.00, in a 52-week range of $87.62 to $103.78.