McDonald’s has today (Tuesday, July 30) reported its first global drop in quarterly sales since 2020.
Global comparable sales decreased by 1% affecting international markets and the US base.
Segment performance was impacted by negative comparable sales across a number of markets, driven by France.
Sales in the US decreased by 0.7%, mainly due to a reductions in guest numbers and strategic menu price increases.
The financial results highlighted that continued digital and delivery growth contributed positively to the final figures.
Sales in Latin America and Japan were down by 1.3% compared with a 14% jump a year earlier, due to the continued impact of the war in the Middle East and negative comparable sales in China.
Inflation
McDonald’s chair and CEO Chris Kempczinski said that consumers are “more discriminating” with their spend.
However, Kempczinski said that McDonald’s remains focused on “delivering reliable, everyday value”.
President of McDonald’s US, Joe Erlinger said he had seen viral social media posts which sourced reports that McDonald’s has “raised prices significantly beyond inflationary rates”.
In a recent open letter, Erlinger said that this information is “inaccurate”.
He said that the fast food chain “works hard” to minimise the impact of price increases.
McDonald’s
The average price of the fan favourite, a Big Mac, has increased by 21%, from $4.39 in 2019 to $5.29 now.
“I fully expect the prices at your local McDonald’s to be an area of conversation and focus in the coming months.
“As it does, I hope you’ll see the programs we’re launching nationally and locally as meaningful to you,” Erlinger said.
McDonald’s earned $2.97 per share on an adjusted basis, a decrease of 6% when also excluding prior year charges, according to the quarterly financial results.