United States – McDonald’s sales fell during the second quarter of 2024, for the first time since 2020, which is less than analysts’ expectations for modest growth.
The company said in a statement yesterday that the chain’s sales fell 1 percent during the second quarter on an annual basis, amid a decline in sales in all McDonald’s geographic sectors.
The global decline comes as diners around the world are cutting back on Big Macs, due to years of rising prices and tight household budgets.
The chain’s sales in the Middle East and other parts of the world were also affected, driven by the boycott of the restaurant, against the backdrop of the Israeli war on the Gaza Strip.
Activists from many Arab and Islamic countries have called for a boycott of all companies suspected of supporting Israel. Meanwhile, photos published by the McDonald’s Israel website in the first week of the war on Gaza showed it providing meals to the Israeli army.
At the end of Q1 2024, the fast-food company launched a $5 meal in the US to convince diners that it was still an affordable option.
The chain will remain focused on “trusted, everyday value, as diners become increasingly discerning in their spending,” CEO Chris Kempczinski said in a statement Monday from the company.
Outside the United States, boycotts over the war between Israel and Palestinian factions continue to hit sales in the sector that includes the Middle East.
The company had previously warned that the recession in some of its markets would continue until the conflict was resolved; McDonald’s also reported lower same-store sales in China and France.
Agencies
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2024-08-04 13:28:12
