The lack of popularity of McDonald's on the high streets of Britain and Germany dragged down the global sales of the world's largest restaurant chain in May and offset its attempts to tempt customers with more healthy food.
Sales in Europe, McDonald's second biggest market after America, fell 1.4 per
cent last month compared with the same period last year. Overall, outlets of the fast food chain notched up a 1.8 per cent gain in May.
McDonald's released the disappointing results a day after the head of its European business left. Russ Smyth, a 21-year veteran of the company, was resigning for personal reasons. He will be replaced by Denis Hennequin, the vice-president of the European business, from 1 July.
Janice Meyer, an analyst at CSFB, said the replacement of Mr Smyth could finally lead to the end of the decline in Europe.
Wall Street has become frustrated that the company has not been competing effectively. Its shares slipped 84 cents to $29.57 in early trade in New York. Its stock has fallen 7.8 per cent this year after gaining almost 30 per cent last year.
Sales at US outlets open more than a year jumped by 4.2 per cent.
- INDEPENDENT
