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McDonald's same-store sales fall for the 1st time since the pandemic, profit slides 12%

McDonald’s posted weak sales in the second quarter as increasingly value-conscious consumers paid fewer visits to restaurants

Dee-Ann Durbin
Monday 29 July 2024 07:07 EDT
Earns McDonalds
Earns McDonalds (Copyright 2023 The Associated Press. All rights reserved)

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McDonald's posted weak sales in the second quarter as increasingly value-conscious consumers in the U.S., China and paid fewer visits to restaurants.

Sales at locations open at least a year fell 1% worldwide across every company segment in the April-June period, the first decline since the final quarter of 2020 when the pandemic shuttered stores and millions stayed home.

McDonald's warned in April that more of its inflation-weary customers were seeking better value and affordability. The Chicago burger giant introduced a $5 meal deal at U.S. restaurants on June 25, which was late in this financial reporting period.

Quarterly revenue was flat at $6.5 billion and just off the $6.6 billion that Wall Street was expecting, according to analysts polled by FactSet.

The company's net income fell 12% to $2 billion, or $2.80 per share, far from the per-share profit of $3.07 that industry analysts had forecast.

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