In rarity, McDonald’s reports flat global sales

NEW YORK – The Golden Arches are starting to lose some of their shine.

McDonald’s Corp. said a key revenue figure came in flat in July, its worst showing in more than nine years, as diners pulled back amid a rough economy. After years of outperforming rivals with a string of popular new items, the snag also suggests competition is intensifying for the world’s biggest hamburger chain.

The last time the global sales figure dipped for McDonald’s was in April 2003. The figure had grown every month since then, even through the recession.

“McDonald’s may be underperforming the industry, which is not typical for them,” said Sara Senatore, a Bernstein analyst. She noted that Taco Bell is showing strength as a result of its popular new Doritos-flavored tacos, with revenue at restaurants open at least a year registering double-digit growth in the second quarter.

Burger King Worldwide Inc. and Wendy’s Co. are also revamping their menus and stepping up their marketing campaigns.

In the U.S., McDonald’s said its promotions failed to drive growth in July, and revenue at restaurants open at least 13 months dipped 0.1 percent. The Oak Brook, Ill.-based company also said it faced a tough comparison from a year ago, when it launched the mango pineapple smoothie.

Overall, analysts polled by Thomson Reuters had expected growth of 2.8 percent in July.

CEO Don Thompson, who took the helm in July, said in a statement Wednesday that he’s confident the company will build sales over the long term.

McDonald’s said it plans to restart growth in the U.S. by continuing to offer variety and new menu items. In Europe, it said it will boost customer traffic by featuring everyday value items. In Asia, the company has been working to offer locally relevant menu options and “convenience enhancements,” such as delivery.