American consumers appear to be increasingly wary of products sold by McDonald’s and Coca-Cola as sales for each have slumped.
Profits dropped by a massive 30% for McDonald’s in the last three months, while Coca-Cola experienced a profit fall of 14%.
Both the companies put the blame on lower sales in the US, but there were also fewer consumers in Germany, and in Russia where the government closed some outlets in retaliation against sanctions. In China sales were dented by a scandal over out-of-date meat supplied to the chain.
Despite lowered sales, McDonalds still brought in $1.07bn in profit in the months of July, August and September. The world’s largest drinks group, Coca-Cola, managed a $2bn profit but revenue did not increase.
Both companies have been struggling to introduce products which would appeal to a more health-conscious market. McDonald’s has introduced more salads and what it says are healthier options.
Coca-Cola has spent the past decade trying to offset the trend away from sugary drinks by introducing more low and zero-calorie drinks.
But the jury is still out over whether this is a sea change and if so, if it is caused by the search for healthier options or whether American consumers have not fallen out of love with fast food and are turning to other providers of it.
