Unhappy Meal: McDonald's Serves Up a Disappointing July

The fast food giant sees a 2.5 percent decline in global sales.
4:27 | 08/08/14

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Transcript for Unhappy Meal: McDonald's Serves Up a Disappointing July
-- company new York and as a financial markets close in Austria were to date Friday August 8 -- stock. And today the forces that's why I think July her mobile months. For McDonald's. Here to explain accidental -- find -- Friday afternoon Mike how are you today. I'm good thank you so what happened -- wipe the smile off Ronald McDonald space for the month. You know declining -- the sales globally for McDonald's of two and a half percent. Well in excess of the declines that were anticipated. And this is a combination really. Continued weakness in the US based stories it really struggled. To try to hold on to their market -- here for awhile now and then of course that news that we heard coming out of China. About the tainted meat from one of their suppliers they had significant. Side impact on their sales in Asia and that actually is is another thing -- -- We talk let's would have presented a -- -- a very large number but put that in context is far as McDonald's -- goes in monthly sales worldwide. Yeah I mean it amounts to about sixty million dollars in sales and didn't show up in a given month. So McDonald's doesn't include close to 29 billion dollars in sales globally is expected this year so you know it's it's may -- seems like just a minor percent shortfall and it really is but the fact remains really I think for investors or for anybody looking at the company. Is that it's really not growing it's just not growing on an aggregate basis and this is a company that's been. Kind of growing nonstop for. Fifty years immigrants -- Asian sauce over the expansion of -- -- obviously an international force I want to take a look at how investors digested this and yes. -- bad play on words there to date chart -- me. Through this. Well this is actually kind of insisting it right you know -- -- another dose of bad news and the stock today has managed to absorb the bad news about declining even though -- earlier today the overall market was weak it's now come back McDonald's is held its own and there. And what it tells you -- tells me is that perhaps. A lot of the bad news -- already been anticipated and built into the stock stock has been a terrible performer -- down on the year it's actually barely out over the last two years -- US stock market is up close to 50% so that kind of is any -- sometimes when a stock refuses to go down on bad news. That may be there's no believers out there left to disappoint. In its interest and I guess that's sort of like that that doubled action now is better the one that you don't think you're gonna. -- let me ask that is -- the overall impact of this move this emerges that we see of sort of healthy or healthier seeming options in the fast food industry to Paul -- I know of course always comes top of mind -- is that something that's still factoring into McDonald's performance. It definitely is on some level we cannot really calculate to what degree that's really what's going on principally here now. Chipotle has been an amazing growth story by the way you -- majority owned by McDonald's McDonald's on and off years ago. And basically they are that whole category of article fast casual -- -- more natural foods it's kind of sort of made to order. That is definitely growing fast but I will point out. In the last quarter both burger king and Wendy's managed to -- domestic growth in their same store sales so it's not as if the entire category. Is losing dollar for dollar what to -- when the rest of those companies are gaining. But I do think what's going on with McDonald's is it's -- -- tired menu it's got a cluttered menu they haven't had a new kind of hit in a while. And you know under their current CEO Don Thompson -- sort of emphasize things like. More complicated. Coffee type service and basically that -- a lot of criticism by franchisees that they've kind of -- up the operations. On the store level because he's so obsessed with going after Starbucks coffee business as opposed to freshening up. The food offering so. McDonald's and general is so -- That you know everybody else when they come when they kind of come after somebody's gonna go after mcdonalds so that's one of the reasons but he hasn't come up with a formula that CEOs -- of the formula. For essentially exciting the the core customer base here in the US or in the rest of the world. And so are investors not exactly eleven -- -- at the same time now waiting to see what's gonna happen my sense -- on finance on this Friday might thank you so much have a good weekend all right you saw when you -- watching -- -- with abcnews.com related. -- -- New York.

This transcript has been automatically generated and may not be 100% accurate.

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