Additional Coverage:
- McDonald’s sales dropped for the 2nd quarter in a row as customers keep tightening their belts (newsbreak.com)
McDonald’s Sales Decline for Second Quarter
McDonald’s has experienced a second consecutive quarter of declining global sales, falling by 1.5%. The fast-food giant faced challenges in international markets, particularly in France, the UK, China, and the Middle East.
Rising Costs Impact Consumer Spending
Fast-food chains like McDonald’s have been grappling with food inflation, which has impacted consumer spending. The rising cost of ingredients and labor has led to menu price increases, making it more expensive for customers to eat out.
US Sales Hold Steady
While international sales declined, comparable sales in the US remained relatively flat, with a slight increase of 0.3%. However, net income decreased by 3% due to higher expenses.
Recent E. coli Outbreak Impact Uncertain
The latest financial results do not reflect the impact of the recent E. coli outbreak linked to McDonald’s Quarter Pounder burgers. The Food and Drug Administration is still investigating the outbreak and has not yet determined the exact cause.