McDonald's had a hard act to follow after the big success of the debut of its All-Day Breakfast menu last year. Fred Katayama reports.
Quarterly profit inched lower at the Golden Arches, and revenue fell. And sales at existing restaurants dropped in the U.S. McDonald's had a hard act to follow after the big success of the debut of its All-Day Breakfast menu last year. But, while its domestic performance fell, profit and sales slid less than expected. It fared much better overseas. Sales sizzled in China and Japan. Morningstar analyst R.J. Hottovy said, "Generally, a lot of initiative, like speed of service, menu composition, the value menu are still resonating. This was a difficult quarter with All-Day Breakfast, so it's no surprise the numbers were negative." Looking ahead, the CEO leading the turnaround, Steve Easterbrook, said McDonald's will also find it challenging performance-wise because the prior year quarter benefited from good weather, a leap year, and momentum from that breakfast menu. McDonald's shares giving back some of last year's nearly five percent gain at the start of trading.