On Monday, McDonald’s disclosed an unexpected decline in its quarterly worldwide comparable sales, indicating the company’s difficulty preventing financially constrained patrons from preparing less expensive meals at home.
LSEG data show that global sales decreased 1% in the second quarter, marking the first decline in 13 quarters, as opposed to analysts’ average prediction of a 0.53 percent increase.
Persistent inflation and rising burger and pizza prices have compelled the lower-income population to switch to more affordable meal options at home, reducing demand for fast food chains like McDonald’s and Domino’s Pizza.
This has led restaurants to introduce several limited-time deals and value bundles priced between $3 and $5 to entice value-conscious customers back. Since competitors Burger King, Wendy’s, and Starbucks started offering meal deals recently, the battle for cheap meals has intensified.
Following its launch on June 25, McDonald’s planned to continue offering its $5 meal deal at most US locations through August. Comparable sales in the US decreased by 0.7% during the quarter that ended on June 30 after rising by 10.3% in the same period last year. Due to weakness in France, sales in international markets decreased by 1.1% compared to estimates of a 1.69% growth.
Also Read:
India: Revised Results and Ranks for NEET-UG 2024
