![McDonald's Retains Rank As Largest Single Restaurant Brand In The World According To 2012 Sales Report A McDonald's restaurant on March 12, 2013 in Mill Valley, California.](https://api.time.com/wp-content/uploads/2014/11/mcdonalds.jpg?quality=85&w=2400)
McDonald’s has said it is planning to simplify its menu and revamp its marketing approach, but consumers still aren’t loving the fast-food chain.
The company reported global comparable sales dropped 0.5% in October, as declines were reported in the U.S. and markets abroad. Though the reported declines weren’t as great as analysts had anticipated, McDonald’s results were far worse than a year ago, when growth was notched in the U.S. and Europe.
This year, comparable sales slid 1% in the U.S. and fell 0.7% in Europe. Analysts surveyed by Consensus Metrix had expected a 1.9% drop in the U.S. and a 2% decrease in Europe. Europe’s results were stung by “very weak” results in Russia, where McDonald’s has faced pressure from temporary restaurant closures.
Fast-food chains such as McDonald’s are facing pressure in the U.S. and other mature markets as consumers are spending more of their money at fast-casual chains, such as Chipotle. The rival chains offer menus that consumers perceive to be healthier, as well as fairly quick service that doesn’t require a server. The industry is also challenged by the fact that low-income consumers in the U.S., a group that spends more at fast-food chains, are still facing weak wage growth and poor job prospects.
More Must-Reads from TIME
- Breaking Down the 2024 Election Calendar
- How Nayib Bukele’s ‘Iron Fist’ Has Transformed El Salvador
- What if Ultra-Processed Foods Aren’t as Bad as You Think?
- How Ukraine Beat Russia in the Battle of the Black Sea
- Long COVID Looks Different in Kids
- How Project 2025 Would Jeopardize Americans’ Health
- What a $129 Frying Pan Says About America’s Eating Habits
- The 32 Most Anticipated Books of Fall 2024
Contact us at letters@time.com