McDonald’s has reported its first global sales decline in over three years, with comparable sales dropping by 1% in the second quarter. This decline goes against analysts’ predictions, who had expected a slight increase of 0.5%.
CEO Chris Kempczinski explained that the decline was due to inflation causing consumers to opt for more affordable dining options instead of McDonald’s more expensive menu items.
Despite an overall increase in revenue by 1%, the company faced challenges from low consumer confidence and rising menu prices, including for popular items like the Big Mac. The higher prices have made some customers less likely to choose McDonald’s.
In response to the changing consumer behavior, McDonald’s launched a $5 meal deal in June, aiming to appeal to budget-conscious customers. The company plans to continue this promotion into August in hopes of boosting sales and making dining more affordable for its customers.
This strategy is part of McDonald’s efforts to adapt to economic conditions and consumer preferences, ensuring they remain competitive in a challenging market.
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