McDonald’s global sales fell for the first time in nearly four years in the second quarter as inflation-weary consumers skipped eating out or chose cheaper options. The company said it expects samestore sales to be down for the next few quarters and is working on fixes like meal deals and new menu items.
“Consumers still recognise us as the value leader versus our key competitors, it’s clear that our value leadership gap has recently shrunk,” McDonald’s chairman, president and CEO Chris Kempczinski said on July 29 during a conference call with investors. “We are working to fix that with pace.”
Sales at locations open at least a year fell 1% 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 US, sales fell nearly 1%. McDonald’s saw fewer customers but it said those who came spent more because of price increases. Kempczinski defended the higher menu prices, saying the costs for paper, food and labour increased as much as 40% in some markets over the last few years.
Net income down
The company’s net income fell 12% to $2bn, or $2.80 a share. Excluding one-time items such as restructuring charges, McDonald’s earned $2.97 a share. That was far from the pershare profit of $3.07 that industry analysts had forecast. In May, McDonald’s CEO Joe Erlinger said in an open letter that the price of Big Macs had risen 21% since 2019.
