McDonald's Reports Surprise Global Sales Decline, First in 13 Quarters
McDonald's has announced a surprise decline in global sales, its first in 13 quarters, as consumers seeking good deals avoid pricier menu items, including the Big Mac.
Persistent inflation has forced low-income consumers to turn to more affordable food options at home, leading fast-food chains like McDonald's, Burger King, Wendy's, and Taco Bell to focus on quality meals to drive customer traffic.
McDonald's shares, down 15% this year, rose nearly 4% after the $5 meal deal launched in June exceeded expectations. The company plans to extend the service beyond August and remains confident in its 40% operating margin for 2024, while being more selective about price hikes to protect profitability.
McDonald's is maintaining its $2.7 billion investment budget, with over half allocated to new restaurants in the US and international markets. However, the company has faced consumer boycotts related to the Gaza conflict, which have impacted sales in the Middle East.
