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BUSINESS Tuesday 24 January 2017
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McDonald’s sales dip in US, underscoring comeback challenges

CANDICE CHOI The company isn’t alone
AP Food Industry Writer in struggling to attract
NEW YORK (AP) — Mc- more customers. Starbucks
Donald’s is trying stage CEO Howard Schultz has
a comeback, and offer- said the retail landscape
ing Egg McMuffins all day would undergo a “seis-
won’t be enough to get mic” change as people
more people in its restau- do more of their shopping
rants. online, leading to less foot
The world’s biggest burger traffic in general.
chain said U.S. sales dipped The coffee chain has de-
1.3 percent at established livered consistent growth
locations for the final three in recent years, but saw its
months of the year. transactions at established
Customer traffic also con- U.S. locations slip by 1 per-
tinued to slide for all of cent in the previous quar-
2016 despite the rollout of ter. Starbucks reports its re-
an all-day breakfast menu, sults for last three months of
marking the fourth straight 2016 later this week.
year of declines domesti- McDonald’s, meanwhile,
cally. has conceded that it failed
Since the start of 2013, cus- to keep up with changing
tomer counts are down 10 tastes and it’s speeding
percent at established U.S. up efforts to transform into
locations. This photo shows the sign at a McDonald’s restaurant, in Miami. On Monday, Jan. 23, 2017, Mc- a “modern, progressive
Overseas, the company’s Donald’s said quarterly sales rose 2.7 percent at established locations as growth overseas offset burger company.”
quarterly performance a drop in the U.S. (AP Photo/Alan Diaz) Easterbrook said the is-
was better, and sales rose sue of customer counts in
globally. buzz online. people to eat at home. pany expects to start draw- the U.S. “dominates our
The Oak Brook, Illinois- The results underscore the The NPD Group said this ing more customers with conversations as we plan
based company attrib- hurdles for McDonald’s as month it expects customer compelling value deals our business.”
uted the sales decline at it pushes to revitalize its im- traffic for the overall res- and convenient ways to He noted that the modest
home to a tough com- age while facing broader taurant industry to remain order. expectations for the indus-
parison from the year-ago challenges, including con- “stalled” this year, as it was It also recently introduced try mean that increasing
period, when it introduced venience stores selling in 2016. its Big Mac in different sizes, customer traffic may re-
the all-day breakfast menu more foods and cheaper McDonald’s CEO Steve and has been testing fresh quire taking market share
that generated enormous groceries encouraging Easterbrook said the com- beef for some of its burgers. from competitors.q

Federal judge swats Aetna-Humana insurer combo

TOM MURPHY giving serious consideration largest insurers into three, in a statement that the any impact from the deals
AP Health Writer to an appeal after put- a list that includes United- decision was “a victory for on consumers would take
A federal judge has reject- ting forward a compelling Health Group Inc., currently American consumers - es- years to materialize and
ed health insurer Aetna’s case.” the largest. pecially seniors and work- could lead to savings in
bid to buy rival Humana Aetna, the nation’s third- The big insurers had argued ing families and individu- some areas,
on grounds that the deal largest health insurer, had that by getting bigger they als.” along with the risk of higher
would hurt competition in announced in 2015 its plan will be able to negotiate Industry experts have said costs elsewhere.q
hundreds of Medicare Ad- to spend around $34 billion better prices with pharma-
vantage markets, on Humana Inc. and be- ceutical companies, hospi-
ultimately affecting the come one of the top pro- tals and doctor groups that
price consumers pay for viders in the fast-growing also are growing.
coverage. Medicare Advantage mar- They also expect to cut ex-
U.S. District Judge John ket. Medicare Advantage penses and add more cus-
Bates said in an opinion plans are privately run ver- tomers, which helps them
filed Monday that federal sions of the government’s better spread out the cost
regulation would prob- Medicare program for of investing in technology
ably be “insufficient to people who are over age to manage and improve
prevent the merged firm 65 or disabled. care.
from raising prices or re- The Justice Department But Bates, who is based in
ducing benefits,” and nei- sued last summer to block Washington, D.C., said in a
ther new competitors nor Aetna’s deal and Blue 158-page opinion that the
an Aetna plan to sell some Cross-Blue Shield carrier Aetna-Humana combina-
of the combined com- Anthem Inc.’s separate, tion would “likely substan-
pany’s business to another $48-billion purchase of Cig- tially lessen competition”
insurer, Molina Healthcare na Corp. for Medicare Advantage
Inc., would be enough to Both cases went to trial late plans in 364 counties and,
ease competitive con- last year. An opinion has separately, in some Florida
cerns. yet to be rendered for the public insurance exchang-
Aetna spokesman TJ Craw- Anthem case. es.
ford said the insurer was re- The two deals would con- Deputy Assistant Attorney
viewing the decision “and solidate the nation’s five General Brent Snyder said