NEW YORK — McDonald’s Corp., the world’s biggest hamburger chain, said Thursday that a key sales figure fell for the first time in nearly a decade in October, as it faced the double whammy of a challenging economy abroad and intensifying competition at home.
The company, based in Oak Brook, Ill., said global revenue at restaurants open at least 13 months fell 1.8 percent for the month. The last time it dropped was in March 2003.
The figure is a key metric because it strips out the impact of newly opened and closed locations. It’s a snapshot of money spent on food at both company-owned and franchised restaurants and doesnot reflect corporate revenue.
McDonald’s says the figure fell in each of the three regions it reports. In both the U.S. and Europe, it fell 2.2 percent. In the region encompassing Asia, the Middle East and Africa, it dropped 2.4 percent. Chief Executive Officer Don Thompson cited the “pervasive challenges of today’s global marketplace” for the declines.
Canada, which is not included in the monthly sales figures, was positive for the month.
After years of outperforming its rivals, McDonald’s has been hitting some road bumps recently, with longtime rivals Burger King and Wendy’s Co. reviving their brands with new menus and TV ad campaigns.
Additionally, people are increasingly choosing restaurants such as Chipotle Mexican Grill Inc. and Panera Bread Co. The broader fast-food landscape has been undergoing changes over the past several years, too, with the rise of chains such as Subway and Starbucks.
In the U.S., the company is refocusing on the Dollar Menu, which was introduced about a decade ago. The move comes after an attempt to shift customers to an “Extra Value Menu,” which charges slightly higher prices, fell flat.
The Extra Value Menu was intended to give McDonald’s greater pricing flexibility, rather than being boxed in by the $1 price. With the Dollar Menu, the company has had to swap out many items over the years as ingredient costs haveclimbed.
In October, McDonald’s said marketing for its Dollar Menu in the U.S. was offset by “modest consumer demand” and heightened competition. Moving forward, the company said it would continue its everyday value marketing.
Andy Barish, a Jefferies analyst, noted that the disappointing results were despite a Monopoly promotion and the introduction of its Cheddar Bacon Onion sandwiches. Barish also said McDonald’s could face a tough fourth quarter given the challenging economic climate - even with the periodic appearance of its popular McRib sandwich scheduled for later this month.
McDonald’s shares fell $1.73, or 2 percent, to close at $85.13.
Business, Pages 28 on 11/09/2012