Why Aren't McDonald's Customers Lovin' It?

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Oct. 21 (Bloomberg) -- Alix Steel examines McDonald's third-quarter earnings numbers on Bloomberg Television's "In The Loop." (Source: Bloomberg)

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Let's get straight to alix steel for more on mcdonald's. the big takeaways that mcdonald's continues to struggle to grow, especially in the u.s.. about six percent year on year growth, $7.32 billion, those numbers look stolid.

When you dig down into the same store quarterly sales, they fell short, seven/10 of one percent.

They were down one percent in the middle east.

The only bright spot was europe.

They were up slightly, two/10 of one percent.

--2 --2/10 of one percent.

The real issue is that there is not a lot of low hanging fruit for the company to set bail.

Speaking of the fast food business, talk about the competition.

We keep comparing mcdonald's to chipotle.

They had killer growth last week.

There was that recently conducted survey and the results were unsettling for mcdonald's. mcdonald's is the restaurant that consumers are least likely to recommend to friends and family, but it is the brand that most people are familiar with.

While no one needs to recommend a mcdonald's because it is well- known and it is still the leader when it comes to revenue per store, coming in at 2.5 million.

Just because someone does not recommend the big mac does not mean that that company is losing customers, though.

Goldman sachs waits out that that could be a possibility.

Quick service name is spending double-digit son advertising for the first time in 10 years and mcdonald's is falling behind, spending only five percent.

They reached the conclusion that mcdonald's is losing customers.

They are very exposed to that lower income bracket, but the conversion rate is falling.

People know about mcdonald's and have visited the franchise in the past year.

The whole consumer space saw a huge run-up earlier in the year and according to nicole reagan at piper jaffray, it was not unfathomable tom of it as we continue to have weak fundamentals, they need to breathe twice as they face that kind of uphill battle with treasury yields continuing to rise, making their dividend not as appealing.

Now, long-term catalysts know that there is still stabilization in europe.

Mighty wings will be reflected most strongly in the fourth quarter results could be a big game changer for mcdonald's as well.

Alix steel, thank you.

Much more on mcdonald's later in the program.

I went inside their test kitchen

This text has been automatically generated. It may not be 100% accurate.

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