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"Fast food" by Daniel Barcelona (CC BY 3.0)

McDonald’s sales decline as eating habits shift

In the U.S., sales fell 2.8 percent in August as more people opt for fast-casual food.

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All around the world, McDonald’s saw a decrease in the company’s sales this year. In the U.S., sales fell 2.8 percent in August, 14.5 percent throughout in Asia, Pacific, Middle East and Africa and less than 1 percent in Europe.

The company blamed the decrease in sales on a scandal that involved meat from a U.S. food supplier operating in China. A television report showed that workers at Shanghai Husi Food Co. repackaged expired meat. The factory supplies meat to McDonald’s and Yum! Brands, which owns KFC, Taco Bell and Pizza Hut. Yum! has reported increased sales this year around the globe, but the numbers are still behind, thanks to the scandal.

But the scandal doesn’t explain the U.S. drop in sales. Research from Brand Keys, which measures customer loyalty, found that more people are opting for what the report called “quality food” at fast-casual eateries, as opposed to fast food, also known as Quick Service Restaurants. As McDonald’s sales drop, sales in companies like Chipotle, Qdoba and Five Guys are booming.

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