McDonald’s posted weak sales in the second quarter as increasingly value-conscious consumers in the U.S., China and 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.
Quick Read
- McDonald’s same-store sales fall for the 1st time since the pandemic, profit slides 12%
- McDonald’s posted weak sales in the second quarter, with increasingly value-conscious consumers in the U.S., China, and other regions visiting restaurants less frequently.
- Sales at locations open for at least a year fell 1% worldwide across every company segment in the April-June period, marking the first decline since the final quarter of 2020.
- In the U.S., same-store sales fell nearly 1%, with fewer customers visiting but spending more due to price increases.
- Lower store traffic was also reported in China, France, and the Middle East, where boycotts have occurred due to perceptions of McDonald’s supporting Israel in the Gaza conflict.
- McDonald’s warned in April that inflation-weary customers were seeking better value and affordability, leading to the introduction of a $5 meal deal in the U.S. on June 25.
- Quarterly revenue was flat at $6.5 billion, slightly below Wall Street’s expectation of $6.6 billion.
- Net income fell 12% to $2 billion, or $2.80 per share, with adjusted earnings at $2.97 per share, missing the forecasted $3.07 per share.
- McDonald’s shares fell less than 1% in premarket trading.
The Associated Press has the story:
McDonald’s same-store sales fall for 1st time since pandemic, profit slides 12%
Newslooks- (AP)
McDonald’s posted weak sales in the second quarter as increasingly value-conscious consumers in the U.S., China and 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 U.S., 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 Chicago burger giant introduced a $5 meal deal at U.S. restaurants on June 25, which was late in this financial reporting period.
Quarterly revenue was flat at $6.5 billion and just off the $6.6 billion that Wall Street was expecting, according to analysts polled by FactSet. The company’s net income fell 12% to $2 billion, or $2.80 per share. Excluding one-time items such as restructuring charges, McDonald’s earned $2.97 per share. That was far from the per-share profit of $3.07 that industry analysts had forecast. McDonald’s shares fell less than 1% in premarket trading.
