McDonald's faces slump

The world's largest fast food chain, McDonald's, is struggling to keep on top of its game.

Sales in the US took a knock when sales fell during the first three months of 2013. The drop of 1.7% was more than had been predicted.

The sales drop meant net income fell to $1.2bn (£710m) from $1.27bn a year earlier.

The company believes the fall was due in part to severe weather over the winter.

Sales also dropped in Germany, Japan, and Australia.

But more people in the UK, France and Russia bought McDonald's food from January to March this year. Sales were up by 1.4%, following on from an increase in sales from October to December 2013.

But in that last quarter of last year, overall sales had dropped. Falls were registered in the US, Asia, the Middle East and Africa. The company said 2013 had been a "challenging year".

At the time, chief executive Howard Schultz said the reason growth had not matched last year's 8% was because of the rise in online shopping.

The fast food giant has been trying to introduce healthier food options. It has been offering a wider range of goods, including smoothies and salads, but so also have its rivals Wendy's and Burger King.

In January it said it would open up to 1,600 new outlets in 2013 to add to its existing 34,000 global sites.

It also intends to offer new higher-priced products to keep pulling in customers who are willing to spend more.

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