Foodservice Equipment Reports
Chains Economic Global News Late Breaking News News

McD’s Saw a Great 2Q, But Overall Industry Sales Hit a Wall in July

McDonald's counter

The good news reported by McDonald’s for the second quarter—including comparable same-store sales in the U.S. rising 5.7% and global same-store sales rising 6.5% across all geographic areas—marks the best quarter of sales comp growth in the U.S. since the chain debuted all-day breakfast in 2015.

But traffic remains a problem for the world’s biggest restaurant chain, and it is not alone in those struggles. July was a tough month in every foodservice sector and region. The monthly snapshot of the industry provided by TDn2K’s Black Box Intelligence is not a pretty one.

The more than 31,000 chain units controlled by more than 170 chains tracked monthly by Black Box Intelligence saw same-store sales and traffic decline for the second month in a row in July. TDn2K said it was the worst year-over-year performance in almost two years. Same-store sales growth was -1.0%, a drop of one percent from June’s results. It’s the first time since September 2017 that the industry has seen sales growth numbers this low.

The -4% same-store traffic growth posted in July was more than just a 0.8% decline from June’s year-over-year growth—it was the weakest traffic growth for the industry since August 2017.

Regional performance also took a hit in July, with only 88 markets posting positive sales compared to 108 in June. Texas was once again the weakest region, with -2.68% sales growth and a -6.58% decline in traffic.

Only two of the 11 regions had positive same-store sales in July, the Southeast and the West; the latter was the strongest, posting positive sales growth of 1.12%. All others had negative growth. This may improve in August as guests shift back into their fall routines.

 

Related Articles

Sales Numbers Best In Three Years

March Brings Relief to Chains

Dining Out Dips in June