March 8, 2013 — McDonald’s new Fish McBites failed to hook enough diners to get the fast-food chain’s U.S. sales growing in February.
The world’s biggest hamburger chain said Friday that a key sales figure was down 3.3 percent in the U.S. for February. It noted that sales in February of last year benefited from an extra day in the leap year. When factoring out that extra day, the company said the figure was flat. That was despite the rollout of the Fish McBites nuggets, which were also offered as the first new Happy Meal entree in a decade.
The struggle to grow at home reflects the mounting pressures on McDonald's, which had managed to pull away from its rivals and thrive even during the Great Recession. Now the Oak Brook, Ill.-based chain is facing a rapidly shifting fast-food industry, with chains such as Chipotle and Panera reshaping customers’ expectations.
Traditional competitors such as Burger King, Taco Bell and Wendy’s are also revamping their menus and stepping up advertising.
In response, McDonald’s has focused on playing up its Dollar Menu and other value items to attract diners. But some analysts have questioned that strategy, saying a reliance on cheaper items will only hurt profit margins. The chain is also increasing its limited-time offers as a way to keep its menu fresh.
Notably, McDonald’s is also facing tough comparisons because of its past success; U.S. sales rose 11.1 percent in February of last year and 2.7 percent in 2011.