• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

The Supreme Court handed Trump a Golden Chariot on tariffs — now he just has to take it

1

The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

The Supreme Court handed Trump a Golden Chariot on tariffs — now he just has to take it
RetailMcDonald's

McDonald’s shakes: Global sales fall sharply in August

Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
Phil Wahba
By
Phil Wahba
Phil Wahba
Senior Writer
Down Arrow Button Icon
September 9, 2014, 9:18 AM ET
17th Annual Skate With The Greats
NEW YORK, NY - JANUARY 17: Ronald McDonald attends the 17th Annual Skate With the Greats at The Rink and Restaurant at Rockefeller Center on January 17, 2011 in New York City. (Photo by Ben Hider/Getty Images)Ben Hider Getty Images

Things just keep getting worse for McDonald’s (MCD).

On top of ongoing problems at home, where U.S. customers have been cutting back on its cheeseburgers and fries for nearly a year, the world’s largest restaurant chain last month had to contend with restaurant closings in Russia and a food safety scandal in Asia that decimated its sales in China and Japan.

The result was a 3.7% decline in global same-restaurant sales in August, along with a warning to Wall Street that McDonald’s gross profit rate would take a hit. That was a much deeper decline than the 3.1% drop analysts were expecting, according to Consensus Matrix, and continued a trend that seen the chain frequently miss analyst projections.

McDonald’s CEO Don Thompson tried to put a brave face on it, saying the company had faced “headwinds” around the world and was trying to “effectively navigate” them to find its footing again.

But he has a big job ahead of him. In the U.S. which accounts for one-third of revenues, same-restaurant sales at restaurants open for at least the last 13 months (to strip out the effect of openings and closings) fell 2.8% compared to the 2% decrease Wall Street experts were anticipating. That continued a trend of poor U.S. results as intense breakfast competition, price-conscious consumers looking for cheaper menu items and operational screw-ups have kept diners away in droves. Last month, McDonald’s finally lost patience and announced it was replacing the head of its U.S. and Canada division less than two years after he was appointed. In 2013, McDonald’s reported a decline in U.S. same-store restaurant sales for the year , breaking a 10-year streak of gains.

In Asia, things were even worse, as a food safety scandal that hit McDonald’s in July proved to be the gift that keeps on giving. Sales in Japan fell 25% last because of the scandal, and a large sales decline in China carried over into August. The Chinese subsidiary of McDonalds’s largest meat supplier, OSI Group, was recently fined for selling expired meat to McDonald’s, Yum Brands’ (YUM) KFC, and other chains in the country after being caught by a Shanghai TV channel in late July re-labelling expired meat packages and using expired beef to make patties. McDonald’s was short on beef and chicken for three weeks in China following the ordeal.

McDonald’s said the China problem would lower its third quarter profit by 15 to 20 cents per share, or as much as $196 million (based on 981 million shares outstanding), and that it is working overtime to win back the trust of customers there.

Despite the recent closings of a few McDonald’s restaurants in Russia against the backdrop of that country’s conflict with Ukraine, Europe was a relatively bright spot, with the Brits helping mitigate some of the pain in Russia and elsewhere. Still, the company spoke ominously of “weak consumer sentiment” in Europe affecting sales and profit for the third quarter, which includes September.

Seems worldwide, fewer and fewer people have been saying “I’m loving it,” with little relief in sight for McDonald’s.

About the Author
Phil Wahba
By Phil WahbaSenior Writer
LinkedIn iconTwitter icon

Phil Wahba is a senior writer at Fortune primarily focused on leadership coverage, with a prior focus on retail.

See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
MagazineSam's Club
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
By Emma HinchliffeMay 27, 2026
49 minutes ago
gg
North Americaconsumer sentiment
Gas is up 51% since February. Americans just started buying less of everything else
By Christopher Rugaber and The Associated PressMay 26, 2026
19 hours ago
t
RetailEconomics
The market keeps winning. Most Americans are losing faith
By Stan Choe and The Associated PressMay 23, 2026
4 days ago
James Daunt sits in a booksop, gesturing with both hands and smiling.
AIbooks
Barnes & Noble CEO clarifies the bookseller’s stance on AI-written books after refusing to ban them: ‘This is a straightforward rejection of AI books’
By Sasha RogelbergMay 22, 2026
5 days ago
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
EconomyRetail
Walmart shoppers are filling their gas tanks with less than 10 gallons for the first time since 2022, and its CFO calls it ‘an indication of stress’
By Marco Quiroz-GutierrezMay 22, 2026
5 days ago
trump
EnvironmentWhite House
Trump reverses grocery, air conditioning pollution regulations because they’re too woke
By Matthew Daly and The Associated PressMay 21, 2026
6 days ago

Most Popular

The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure
Travel & Leisure
The U.S. campaigned to host the World Cup. Now soccer fans will trade their countries' train system for the U.S.'s 'D' rated infrastructure
By Catherina GioinoMay 25, 2026
2 days ago
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
6 days ago
The Supreme Court handed Trump a Golden Chariot on tariffs — now he just has to take it
Commentary
The Supreme Court handed Trump a Golden Chariot on tariffs — now he just has to take it
By Jeffrey Sonnenfeld and Steven TianMay 26, 2026
23 hours ago
The pig in the python: Baby boomers are strangling the economy they built by refusing to move or retire
Economy
The pig in the python: Baby boomers are strangling the economy they built by refusing to move or retire
By Nick LichtenbergMay 25, 2026
2 days ago
Nvidia CEO Jensen Huang admits he criticizes everything his 42,000-plus employees show him: ‘You can’t go a day without some criticism’
Success
Nvidia CEO Jensen Huang admits he criticizes everything his 42,000-plus employees show him: ‘You can’t go a day without some criticism’
By Preston ForeMay 26, 2026
19 hours ago
Current price of silver as of Tuesday, May 26, 2026
Personal Finance
Current price of silver as of Tuesday, May 26, 2026
By Joseph HostetlerMay 26, 2026
21 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.