McDonald’s same-store sales fall for first time since pandemic as profits slide
29 July 2024, 12:34
McDonald’s warned in April that more of its inflation-weary customers were seeking better value and affordability.
McDonald’s posted weak sales in the second quarter as increasingly value-conscious consumers in the US and China paid fewer visits to restaurants.
Sales at locations open at least a year fell 1% worldwide across every company segment in the April-June period, the first decline since the final quarter of 2020 when the pandemic shuttered stores and millions stayed home.
In the US, same-store sales fell nearly 1%. McDonald’s saw fewer customers, but it said those who came spent more because of price increases.
The company also reported lower store traffic in China, France and the Middle East, where people have been boycotting McDonald’s because of a perception that it supports Israel in the war in Gaza.
McDonald’s warned in April that more of its inflation-weary customers were seeking better value and affordability.
The burger giant introduced a five-dollar (£3.90) meal deal at US restaurants on June 25, which was late in this financial reporting period.
Quarterly revenue was flat at 6.5 billion dollars (£5 billion) and just off the 6.6 billion dollars that Wall Street was expecting, according to analysts polled by FactSet.
The company’s net income fell 12% to two billion dollars, or 2.80 dollars per share, far from the per-share profit of 3.07 dollars that industry analysts had forecast.
McDonald’s shares fell less than 1% in pre-market trading.
