McDonald's same-store sales fall for 1st time since pandemic
FILE-A sign is posted in front of a McDonald's restaurant in San Leandro, California. (Photo by Justin Sullivan/Getty Images)
McDonald’s sales dipped for the first time since the pandemic.
Sales at restaurants opened at least a year dropped 1% globally in the April-June period, the first decline since the final quarter of 2020.
Same-store sales fell almost 1% as the burger chain had fewer customers, but they told the Associated Press patrons who visited a restaurant spent more due to price increases.
RELATED: McDonald's $5 meal deal: More details reported in plan to lure customers
McDonald’s also reported lower customer traffic in China, France, and the Middle East, where people have boycotted restaurants based on a belief that the company supports Israel in the war in Gaza.
Citing analysts polled by FactSet, the AP noted that McDonald's quarterly revenue was flat at $6.5 billion and just off the $6.6 billion that Wall Street was expecting.
McDonald’s makes efforts to manage slower sales growth
In May, McDonald’s launched a new $5 meal deal as part of an overall effort by the restaurant giant to step up deals and value messaging to manage slowing sales.
McDonald’s said in April that inflation-weary patrons were eating out less often in many big markets. In the first quarter, fast food traffic was flat or down in the U.S., Australia, Canada, Japan, the United Kingdom, and Germany.
Moreover, the company noted that its same-store sales – or sales at stores open at least a year -- rose 1.9% worldwide in the January-March period. That was below Wall Street’s forecast of a 2.1% increase, according to analysts polled by FactSet.
The Associated Press contributed to this report. This story was reported from Washington, D.C.