This comes a week after new CEO Steve Easterbrook assumed the top job. Easterbrook, who has said he considers himself an 'internal activist,' is faced with reviving the lagging sales that cost previous CEO Don Thompson his job.
U.S. sales fell 4%, as the fast food giant continues to face heavy competition from fast casual chains like Chipotle and Panera.
"Consumer needs and preferences have changed," said the company in a statement. "McDonald's current performance reflects the urgent need to evolve with today's consumers, reset strategic priorities and restore business momentum."
Last week, McDonald's announced it would start to phase out the use of chickens that are raised with human antibiotics.
Sales in Asia, where the company is still being punished by customers following a food safety scandal last year, declined by 4.4%. "Rebuilding brand trust by strengthening McDonald's quality and value perceptions is one of APMEA's top priorities for 2015," the company said.
Total sales were partially offset by a 0.7% gain in Europe sales, where the company saw strength in the U.K. and Germany but still faces headwinds in Russia.
The 1.7% worldwide sales decline reported by McDonald's was much worse than estimates of a 0.3% decline, according to analysts polled by research firm Consensus Metrix, and is telling of how much work the company has left to do under Easterbrook. Last month the company reported a 1.8% decline.
Shares of McDonald's declined 1% to $96.14 in premarket trading and are up 5% over the last 12 months.
